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us stocks plunge as tariffs on china escalate to historic levels
U.S. stocks plummeted on April 11 after tariffs on Chinese imports surged to 145%, triggering a nearly 1,700-point drop in the Dow and losses of 5% and 6% in the S&P 500 and Nasdaq, respectively. China warned of a potential trade war, emphasizing the need for mutual respect in negotiations. The unprecedented tariff rates could raise average effective tariffs significantly, impacting manufacturing and consumer prices, while the World Trade Organization predicts an 80% decrease in bilateral trade, affecting global supply chains.
inflation concerns persist as economists project gradual deceleration through 2025
The stock market has begun a 'Santa Claus' rally, but inflation remains a significant concern for the US economy, projected to stay above the Federal Reserve's 2% target into 2025. Core inflation is expected to hit 2.5% next year, influenced by rising costs in services and potential inflationary policies from the incoming Trump administration. Economists warn that these factors could complicate the Fed's interest rate strategy, with only two rate cuts anticipated next year.
us tariffs threaten yuan as investment banks predict record lows
China's yuan is projected to weaken to record lows as U.S. tariff threats escalate, with major investment banks forecasting an average of 7.51 per dollar by the end of 2025. The yuan's depreciation poses challenges for Chinese authorities, who aim to stabilize the currency while reviving the economy. The People's Bank of China is expected to implement measures to prevent excessive declines, balancing currency control with economic growth.
electric vehicles drive decline in gasoline consumption in china
Electric vehicle sales in China are significantly impacting gasoline consumption, which has declined in recent months. The US Energy Information Administration attributes this trend to increased EV sales, slow economic growth, and a declining population, leading to reduced forecasts for petroleum demand in the coming years. As electric vehicles gain market share, the future of gasoline consumption in China appears increasingly uncertain.
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