Washington: Analysts have expressed mixed feelings over the U.S. 90-day reciprocal tariff for all countries except China. This comes in the wake of President Donald Trump’s announcement of a tariff reprieve, amidst concerns from bond investors about a potential sell-off in the U.S. stock market.
According to News Agency of Nigeria, during a global trade virtual session, trade experts highlighted concerns about the stability of U.S. fiscal policy and the reliability of its commitments. They pointed out that electronics, including smartphones and semiconductors, were initially exempted from the 125 percent tariffs imposed on Chinese imports.
Canadian Prime Minister Mark Carney has warned that the era of U.S. global economic leadership, characterized by alliances based on trust and mutual respect, may be over. In response, Ottawa has imposed retaliatory tariffs on all American-made vehicle imports not covered by free trade agreements.
Japanese Finance Minister Katsunobu Kato emphasized that Japan, holding a significant portion of U.S. government debt, is not engaged in the tariff disputes. He stated that Japan’s foreign reserves are strictly for monetary policy purposes, not foreign policy.
Eurogroup President Paschal Donohoe noted the potential for the Euro to become a dominant global reserve currency. He suggested that domestically, Trump’s tariffs reveal a paradox between his narrative and economic reality, with the temporary tariff reprieve satisfying some financial sectors but leaving agricultural and manufacturing regions in uncertainty.
Critics argue that the abrupt implementation of the tariffs will most heavily impact low and middle-income Americans, exacerbating economic challenges in certain regions.