Investing in a tariff-filled world

[SINGAPORE] On Apr 2, President Donald Trump made waves when he unveiled a sweeping set of tariffs targeting over 180 countries, calling it America’s “Liberation Day”. But just a week later, he took a surprising turn, announcing a 90-day suspension of all reciprocal tariffs and reducing most rates to 10 per cent.

The exception is notably China, where the tariff rate was kept at a staggering 145 per cent. By Apr 11, China had hit back, slapping an equally hefty 125 per cent tariff on US goods. This back-and-forth has sparked fears of a full-blown trade war between the world’s two largest economies.

Currently, the US is considering scaling back its tariffs on China to ease tensions. China, on the other hand, has offered some relief by exempting certain US imports. Despite the minor de-escalation, the situation remains volatile and unpredictable, with both nations locked in a stand-off.