Donald Trump has as soon as once more struck the market with a recent spree of tariffs. The US president has levied 25% tariffs on the European Union, adopted by deploying a further 10% tariffs on China. Minutes after the aforementioned tariff announcement, the cryptocurrency market felt the aftereffects of it, with Bitcoin plunging beneath $80K value ranges. Are Trump’s tariff spree ideations spelling hassle for the US economic system? Let’s discover out.
Trump’s Tariff Technique: A Blunder or a Boon?
Donald Trump is at the moment on an aggressive tariff spree. The forty seventh US president is at the moment busy imposing tariffs on nations, levying 25% and 10% tariffs on imports from the EU and China, respectively. Trump’s tariff choice had an enormous international impact, with markets tumbling down as a result of rising commerce conflict fears.
On the similar time, Trump has additionally levied taxes on Mexico and Canada, sparking points for US automakers.
Per a submit by the Kobeissi Letter, america’ choice to impose tariffs is very regarding for the US economic system automakers as it might increase prices for the auto producers. As an example, this tariff would find yourself including $3000 to some 16 million automobiles offered within the US annually.
On the similar time, the tariff will even be impacting the meals costs, as Mexico is accountable for supplying almost 60% of the recent produce to the US.
“For instance, a 25% tariff on Canada and Mexico raises prices for US automakers. This tariff would add ~$3,000 to the value of a number of the ~16 million automobiles offered within the US annually. Meals prices are set to rise as nicely, with Mexico supplying over 60% of recent produce to the US.”
What’s much more telling is the Volatility Index, $VIX.
Even because the S&P 500 has traded close to or in any respect time highs this month, the $VIX has been rising.
It is now up over +30% since February 14th and continues to rise.
Volatility is right here to remain. pic.twitter.com/10Il5aSrpI
— The Kobeissi Letter (@KobeissiLetter) February 26, 2025
Volatility Index Peaks to New Excessive
The Volatility Index, popularly known as the VIX index, has additionally peaked at a excessive of -30% since February 14, 2025.
The VIX index typically measures how a lot the market goes to fluctuate within the subsequent 30 days.
“What’s much more telling is the Volatility Index, $VIX.Even because the S&P 500 has traded close to or at all-time highs this month, the $VIX has been rising. It’s now up over +30% since February 14th and continues to rise. Volatility is right here to remain.”
What’s much more telling is the Volatility Index, $VIX.
Even because the S&P 500 has traded close to or in any respect time highs this month, the $VIX has been rising.
It is now up over +30% since February 14th and continues to rise.
Volatility is right here to remain. pic.twitter.com/10Il5aSrpI
— The Kobeissi Letter (@KobeissiLetter) February 26, 2025
