#U.S.tariffs

[farademetre]

Stock Market Daily Update - April 15, 2025 - InvestTalk Market Wrap

The market had another turbulent session today, though Nvidia and Netflix managed to notch gains. At the same time, trade talks are progressing between Japan, the EU, and the United States, with a focus on tariff disputes and economic collaboration. Japan is pushing for the complete elimination of additional U.S. tariffs—especially on automobiles—while also seeking tariff-free, mutually beneficial agreements.

[whatsissue]

Canadian Economy at Risk: Exploring the Impact of Potential U.S. Tariffs and Protectionist Policies

Canadian Chamber of Commerce Raises Alarm on Potential U.S. Tariffs Impact As the U.S. gears up for its presidential election, a pivotal report from the Canadian Chamber of Commerce has surfaced, alerting stakeholders to the possible economic fallout from proposed U.S. protectionist policies. Authored by Trevor Tombe, an esteemed economics professor at the University of Calgary, the analysis focuses on the repercussions of potential tariffs under Donald Trump's administration and their impact on the interconnected U.S.-Canada economic relationship. Understanding Cross-Border Trade Dynamics While Canadians undeniably appreciate the essential nature of their trading relationship with the U.S., the report points out that this sentiment may not be equally recognized Stateside. Amid an environment rife with geopolitical tensions, Canadian officials have been diligently collaborating with U.S. political counterparts from both major parties to anticipate various election outcomes. Both presidential nominees have embraced protectionist rhetoric, fueling uncertainty regarding Canada’s trade position. Notably, the impending 2026 review of the Canada-U.S.-Mexico Agreement will serve as a crucial test for the incoming administration’s trade policies. Vice-Presidential Candidate Kamala Harris' Stance Expected to align with the Biden administration's approach, Vice-President Kamala Harris has voiced strong opinions, notably criticizing the current NAFTA replacement for enabling job outsourcing by American auto manufacturers. Conversely, Donald Trump has signaled intentions to impose a 10% universal tariff on imports, stirring unease on both sides of the border. Economic Consequences and Mitigation Efforts In response to these concerns, Kirsten Hillman, Canada’s ambassador to the U.S., has expressed optimism that Washington might exempt Canada from such tariffs due to the impracticality of applying them indiscriminately. Nevertheless, Tombe warns of substantial economic damage should these tariffs take effect. His report uses economic models to project potential scenarios: if the tariffs are enacted, the Canadian economy could contract by 0.9% to 1%, translating to approximately $30 billion in annual economic losses. The U.S. would also incur significant costs, estimated at around $125 billion annually. Ripple Effects in a Globally Interconnected Economy Should other nations retaliate with their own tariffs, the situation could deteriorate further, leading to a 1.5% decline in Canadian income and a 1.6% drop in productivity, equating to around $45 billion lost—a staggering hit comparable to half a typical recession's impact. Citing historical precedent, such as the 1971 "Nixon Shock," when a temporary import tariff impacted Canadian exports, Tombe predicts heightened ramifications today, given the intricate nature of the current U.S.-Canada trade interdependencies. Strategic to Transactional Experts caution that U.S.-Canada relations have evolved from strategic to transactional, with Canada now perceived as less crucial compared to emerging global markets. Nonetheless, the new report underscores the vast and deeply intertwined Canada-U.S. economic rapport, highlighted by complex supply chains and vital cross-border investments. With Canada as the top export destination for 34 U.S. states, any disruption in trade could disproportionately affect key Midwestern battleground states, potentially influencing election outcomes. Keywords: Canada-U.S. trade, U.S. tariffs, protectionist policies, Canada-U.S.-Mexico agreement, Canadian economy, cross-border trade, geopolitical uncertainty, economic impact, trade relations, Trevor Tombe, Kirsten Hillman, Donald Trump tariffs, NAFTA replacement, Kamala Harris. Read the full article

[primezone003]

Ethereum Nears ATH, But $2,900 Resistance Looms

Key Notes On-chain data highlights a strong support level at $2,370, with minimal resistance above it. Yet, broader crypto market sentiment has been shaken by geopolitical concerns, including potential U.S.tariffs on the EU. Spot Ethereum ETFs are experiencing increased inflows, totaling $110 million on Thursday. Ethereum ETH $1 845 24h volatility: 2.6% Market cap: $222.72 B Vol.…

[darkmaga-returns]

President Donald Trump is urging the Fed to cut interest rates to offset the inflation that will be caused by tariffs. “The Fed would be MUCH better off CUTTING RATES as U.S.Tariffs start to transition (ease!) their way into the economy,” Trump wrote. “Do the right thing. April 2nd is Liberation Day in America!!!” Reducing interest rates will NOT offset inflation caused by tariffs because the two variables are not directly related.

Tariffs increase costs due to supply, while interest rates influence demand. When tariffs are imposed, the cost of imported goods rise, increasing prices for consumers and businesses. This cannot be offset by lowering interest rates, as rate cuts stimulate borrowing and investment rather than addressing price increases caused by trade barriers. In fact, lower interest rates can exacerbate the problem by weakening the currency, making imports even more expensive, further fueling inflation.

Historically, tariffs have led to stagflation—rising prices combined with economic stagnation—rather than the demand-driven inflation central banks typically target. The Smoot-Hawley Tariff of the 1930s, for example, severely disrupted global trade and worsened the Great Depression. Similarly, Trump’s trade war with China during his first term did not lead to any economic boom but instead forced businesses to adjust supply chains, raising costs for consumers.

Lowering interest rates in this environment offsets capital flows, decreasing confidence and weakening the purchasing power of the currency. The result is a cycle in which consumers face higher costs while the central bank loses the little control it has to manage inflation. The idea that the Fed could actually control inflation is based on outdated Keynesian economics concepts that were drafted when the US had a balanced budget. Now, most demand comes from the government itself, the largest borrower and creator of debt. This is why Jerome Powell spoke out against Joe Biden for creating the largest spending package in US history and multiplying the public sector. The government will never pay off its debts, and the interest payments on that debt alone have been astronomical.

Relying on rate cuts to counter tariff inflation ignores the root cause of the issue. The real solution lies in reducing trade barriers and not relying on tariffs to increase the demand for domestically made goods.