Trump Tariff Threats May No Longer Be Empty
Capital Economics warns Trump tariff threats could significantly affect the global economy if followed through. The advisory firm raised concerns after the U.S. began pushing new demands and higher tariffs on countries like Brazil and Canada.
These threats challenge the common assumption that Trump’s trade talk is largely for show. Analysts say the latest moves signal a more serious and strategic shift.
Instead of targeting global partners all at once, Trump now singles out smaller countries. This shift may cause less market panic but still deliver strong political messaging. Experts say this selective targeting could be more effective than previous “all-at-once” strategies.
Focus Shifts to EU and China Talks
The consulting firm also highlighted renewed focus on EU and China negotiations. These talks carry major weight for the global economy and could shape the next phase of U.S. foreign trade moves.
Despite earlier expectations, the July 9 deadline for tariff pauses was extended. However, the warning signs are growing, especially as equity markets dip and the currencies of affected nations come under pressure.
Dollar Strengthens Amid Selective Trade Pressure
According to Capital Economics, Trump’s tariff threats have surprisingly benefited the U.S. dollar. By targeting smaller economies instead of global ones all at once, the strategy seems to be supporting dollar strength.
The firm noted this measured approach could keep boosting the dollar without sparking major backlash, at least for now.
