The new import tariffs imposed by the United States may escalate the trade war, threatening the global economy. The tariff increases initiated by Donald Trump have led to the highest import taxes in the last century. As a result, bonds and gold have seen price increases, according to Reuters.
This is reported by Finway
“This is a turning point not only for the US economy but also for the global economy. Many countries are likely to fall into recession. If this tariff rate remains unchanged for an extended period, most forecasts can be discarded,” said Olu Sonola, head of US economic research at Fitch Ratings.
It is noted that the price of gold has reached a record high, exceeding $3,200 per ounce. The Japanese yen also rose by more than 1% to 147.3 per dollar, as currency traders sought safe assets outside the US dollar. The euro increased by 0.6% to $1.0912.
The yield on 10-year US Treasury bonds fell by more than 15 basis points, reaching a five-month low of 4.04%. Markets have begun to assess the likelihood of interest rate cuts, even though the new tariffs may lead to significant inflation increases in the country.
“The effective import tax rate in the US has risen during Trump’s administration to 22% from 2.5% in 2024, reaching levels not seen since around 1910,” the report states.
Trump announced a basic import tariff of 10%, as well as significantly higher tariffs for some trading partners, particularly in Asia. Specifically, China faces a 34% tariff, Japan 24%, Vietnam 46%, and South Korea 25%. The European Union also faces a 20% tariff.