{
}
The announcement of new tariffs has led to a stronger US dollar as investors flock to safe-haven assets amid market uncertainty. While the dollar benefits from reduced imports and potential inflation pressures, long-term risks from trade tensions and possible Fed rate cuts could weaken its position. Emerging market currencies, particularly the Mexican peso and Canadian dollar, are vulnerable, prompting increased trading activity in these pairs.
The Swiss stock market is currently appealing due to conservative stocks in the pharmaceutical and food sectors, as investors seek defensive positions amid rising market volatility. The impact of renewed trade disputes remains uncertain, but large companies are better equipped to navigate potential tariffs compared to SMEs. The Swiss National Bank will closely monitor the franc's status as a safe haven, adjusting its policies as necessary.
U.S. President Donald Trump has imposed tariffs of 25% on goods from Mexico and Canada, and 10% on Chinese imports, aimed at curbing drug trafficking and illegal immigration. This move has led to market volatility, with significant declines in technology and automotive stocks, and raised concerns about a potential trade war. The tariffs are expected to impact the global economy, influencing currency values and consumer prices.
The US Federal Reserve maintained its key interest rate at 4.5%, pausing after three cuts in 2024, citing stable unemployment and ongoing inflation concerns. In contrast, the European Central Bank lowered its rate by 0.25% to 2.75%, responding to easing price pressures while remaining cautious about future adjustments.
The Swiss stock market reduced its losses as midday approached, following a decline triggered by Donald Trump's renewed trade war through tariffs on Canada, Mexico, and China, raising fears of a global economic downturn. In macroeconomic news, China's manufacturing activity slowed, with the PMI dropping to 50.1, while Eurozone inflation rose to 2.5%. In Switzerland, property prices increased by 1.7% in Q4, and the services sector showed strong growth, contrasting with the struggling industrial sector.
US tariffs have sparked market turbulence, leading to heightened risk-off sentiment and a stronger US dollar. The S&P 500 is testing key support levels, while gold remains a resilient hedge against geopolitical tensions. Trade dynamics continue to pressure the Federal Reserve's monetary policy.
Global markets are reacting to new tariffs announced by Trump, effective February 4, imposing a 25% levy on Mexican and most Canadian goods, and a 10% tariff on Chinese imports. Analysts predict these measures could increase inflation and reduce GDP growth, with Canada and Mexico facing severe economic consequences. Retaliatory actions from Canada, Mexico, and China raise concerns of a broader trade war, impacting existing trade agreements and increasing market volatility.
The US has announced new tariffs, imposing a 25% tax on imports from Canada and Mexico, and a 10% increase on Chinese goods, effective February 4. UBS predicts these measures could reduce US GDP growth by 0.8 percentage points and raise PCE inflation by 0.4 points by 2025, while China's GDP growth may decline by 0.3 to 0.4 points due to weakened exports. Despite these challenges, UBS maintains its 2025 GDP growth forecast for China at 4.0%, anticipating further tariffs and increased government support.
UBS has evaluated the economic impact of the US's new tariffs on imports from Canada, Mexico, and China, predicting a 0.8 percentage point reduction in US GDP growth and a 0.4 percentage point rise in PCE inflation by the end of 2025. The 10% tariff on China could further decrease US GDP by 0.1 to 0.2 percentage points and reduce China's GDP growth by 0.3 to 0.4 percentage points. Despite these challenges, UBS maintains its 2025 GDP growth forecast for China at 4.0%, anticipating a moderate depreciation of the renminbi due to the tariffs.
A trade war has escalated, with Canada imposing 25% tariffs on $107 billion in U.S. imports, while Mexico and China are preparing retaliatory measures. U.S. markets reacted sharply, with significant drops in futures and a 22% spike in the VIX volatility index, amid concerns over inflation and economic stability. The Fed's pause on rate cuts and ongoing inflation challenges further complicate the outlook for American markets, which are now facing increased volatility due to these geopolitical tensions and competition in artificial intelligence.
Inflation and Monetary Impact
SubCategory
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
impact of tariffs on us dollar and global currency markets
Canadian Dollar
Mexican Peso
United States Dollar
Chinese Yuan
Apple Inc.
USA
MEX
CHN
CAN
Donald Trump
Show more
01:29 04.02.2025
Swiss stock market gains appeal with conservative pharmaceutical and food stocks
17:45 03.02.2025
Trump imposes tariffs on Canada Mexico and China triggering market volatility
Canadian Dollar
Mexican Peso
United States Dollar
Ferrari N.V.
GENERAL MOTORS
Stellantis N.V.
VOLKSWAGEN
NVIDIA Corporation
USA
DEU
MEX
CHN
CAN
Joe Biden
Donald Trump
Show more
12:10 03.02.2025
Fed holds rates steady while ECB cuts interest rate amid inflation concerns
12:00 03.02.2025
swiss stock market stabilizes amid escalating trade tensions and economic concerns
Chinese Yuan
United States Dollar
Euro
S&P Global Inc.
USA
MEX
CHN
CHE
CAN
John Plassard
Donald Trump
Show more
11:45 03.02.2025
us trade tensions escalate impacting markets and inflation outlook
11:08 03.02.2025
new tariffs spark trade tensions and market volatility across global economies
Canadian Dollar
Mexican Peso
United States Dollar
Chinese Yuan
The Goldman Sachs Group, Inc.
Morgan Stanley
Deutsche Bank RV Global PP
USA
MEX
GBR
CAN
Goldman Sachs
Show more
10:56 03.02.2025
us tariffs on imports from canada mexico and china prompt economic analysis
10:18 03.02.2025
us tariffs on imports from canada mexico and china impact analysis
10:15 03.02.2025
global markets face turmoil amid escalating trade tensions and inflation concerns
Canadian Dollar
United States Dollar
Euro
ProShares Ultra Russell2000
Apple Inc.
USA
MEX
CHN
CAN
Jerome Powell
Donald Trump
Show more
10:06 03.02.2025
Trending
Subcategory
Corporate News
Industry Trends
Stock Market Updates
Finance Mergers & Acquisitions
Global Financial Events
Retail and Consumer Goods
Banking Regulations
Industry Mergers & Acquisitions
AI Innovations
Global Trade Developments
Startups & Entrepreneurship
Market Analysis and Predictions
Supply Chain Management
Central Bank Actions
CEO Changes
Government Economic Policies
Funding Rounds & Investments
Energy Sector Developments
AI & Automation Regulations
Workplace Trends
Countries:
Companies:
NVIDIA Corporation
Huawei Technologies CO. Ltd.
The Goldman Sachs Group, Inc.
Wells Fargo & Company
Barclays PLC
Tesla, Inc.
Apple Inc.
Bank of America Corporation
Erste Group Bank AG
Microsoft Corporation
Amazon.com, Inc.
Citigroup Inc.
Morgan Stanley
BNP Paribas SA
JPMorgan Chase & Co.
UBS Group AG
DEUTSCHE TELEKOM
Banco Santander, S.A.
HSBC HOLDINGS
SpaceXCoin USD
Currencies:
United States Dollar
Euro
British Pound Sterling
Swiss Franc
Indian Rupee
Chinese Yuan
Saudi Riyal
Canadian Dollar
Japanese Yen
Swedish Krona
Russian Ruble
Polish Złoty
United Arab Emirates Dirham
South Korean Won
Hong Kong Dollar
New Taiwan Dollar
Armenian Dram
Norwegian Krone
Australian Dollar
Offshore Chinese Yuan
People: