The tariff stick wielded by US President Trump is subverting the international trade order that has been in operation for decades. The global economy, which once thrived on a predictable free trade system, is now collectively "indigesting" in front of tariff barriers. From Apple to Amazon, from Volvo to Diageo, multinational giants sounded the alarm last week: sales targets plunged, layoffs were launched, and strategic blueprints were rewritten. What is more worrying is that the growth expectations of many major economies have been collectively lowered by international organizations.
Corporate emergency room: multinational giants collectively posted "critical illness" notices
Isabelle Mateos y Lago, chief economist of BNP Paribas, pointed out: "The 10% basic tariff plus special tariffs on steel, automobiles, etc. is like injecting an overdose of antibiotics into the global economy." The reality is even more cruel - when the US tariff on some goods of the Asian giant soared to 145%, the global supply chain instantly fell into chaos. The performance outlook of Swedish home appliance giant Electrolux was halved, and Logitech and Diageo simply withdrew their full-year targets. Cindy Allen, CEO of Global Trade Consulting, revealed: "Small and medium-sized enterprises are exiting the market in droves, and this overdose of 'tariff therapy' simply cannot bear it."
Data ICU: Economic indicators of many countries are flashing red lights
The latest economic data reveals a shocking chain reaction: the decline in British exports is close to a five-year peak. What's more ironic is that Germany's seemingly beautiful trade data may just be a "doomsday rush" by companies before the tariffs take effect. Cyrus de la Rubia, an economist at Hamburg Commercial Bank, warned: "There will inevitably be a retaliatory decline next." The Bank of Japan has urgently lowered its growth forecast, and the Netherlands and the Middle East are also unable to escape the fate of lowering growth expectations.
Side effect observation: The dilemma of central banks
This tariff shock wave is reshaping the global monetary policy landscape. Economists generally believe that Trump's tariff policy is essentially a "demand earthquake" - while American consumers pay for high-priced imported goods, the economic vitality of other countries is forcibly suppressed. It is interesting to note that the Bank of England took the opportunity to cut interest rates this week, and other central banks may follow this "fighting poison with poison" response strategy. But the key question is: Will this major trade system surgery in the name of "America First" eventually prompt other countries to reform their economies?
Analysts pointed out that in the current environment, gold is still supported by risk aversion and expectations of loose monetary policy, but we need to be wary of the correction pressure brought by the phased strengthening of the US dollar. If the risk of global economic recession intensifies, gold prices may usher in a new round of increases.
Corporate emergency room: multinational giants collectively posted "critical illness" notices
Isabelle Mateos y Lago, chief economist of BNP Paribas, pointed out: "The 10% basic tariff plus special tariffs on steel, automobiles, etc. is like injecting an overdose of antibiotics into the global economy." The reality is even more cruel - when the US tariff on some goods of the Asian giant soared to 145%, the global supply chain instantly fell into chaos. The performance outlook of Swedish home appliance giant Electrolux was halved, and Logitech and Diageo simply withdrew their full-year targets. Cindy Allen, CEO of Global Trade Consulting, revealed: "Small and medium-sized enterprises are exiting the market in droves, and this overdose of 'tariff therapy' simply cannot bear it."
Data ICU: Economic indicators of many countries are flashing red lights
The latest economic data reveals a shocking chain reaction: the decline in British exports is close to a five-year peak. What's more ironic is that Germany's seemingly beautiful trade data may just be a "doomsday rush" by companies before the tariffs take effect. Cyrus de la Rubia, an economist at Hamburg Commercial Bank, warned: "There will inevitably be a retaliatory decline next." The Bank of Japan has urgently lowered its growth forecast, and the Netherlands and the Middle East are also unable to escape the fate of lowering growth expectations.
Side effect observation: The dilemma of central banks
This tariff shock wave is reshaping the global monetary policy landscape. Economists generally believe that Trump's tariff policy is essentially a "demand earthquake" - while American consumers pay for high-priced imported goods, the economic vitality of other countries is forcibly suppressed. It is interesting to note that the Bank of England took the opportunity to cut interest rates this week, and other central banks may follow this "fighting poison with poison" response strategy. But the key question is: Will this major trade system surgery in the name of "America First" eventually prompt other countries to reform their economies?
Analysts pointed out that in the current environment, gold is still supported by risk aversion and expectations of loose monetary policy, but we need to be wary of the correction pressure brought by the phased strengthening of the US dollar. If the risk of global economic recession intensifies, gold prices may usher in a new round of increases.
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Continuously release precise trading plans to lead members to expand profits, with a stable profit of 988% every month. If you have not made a profit yet, then join us. t.me/fahsufnwks
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.