Trump 2.0 – can that go well? – Diepresse.com
In the first months of his second term, the US President sent shock waves through the global economy. How will things go on now?
It is probably not an exaggeration to say that Donald Trump heralded a new economic policy era with his “Liberation Day” in early April. At the beginning of the second term of office of the US President, the stock marketer and market observer had definitely expected a significant change in direction, especially in customs policy. However, Trump exceeded the most expectations or fears.
Above all, his planned import tariffs against China, which he had escalated on a brand beyond 100 percent after his original announcement, initially caught many traders on the wrong foot. A course of the course on Wall Street followed as rarely before. The leading index S&P 500 broke up by almost five percent on April 3, the day after Trump’s announcement, during the technology index Nasdaq a minus of more than six percent. Another crash followed on April 4th, within two days the most important stock market indices gave up in double digits. This reaction of the market participants may have caused a surprise in their severity. The tendency – immediately high price losses at high import tariffs – was to be predicted with great reliability.
