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Tariffs and market swings: Navigating uncertainty with XTB

XTB

By XTB
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Tariffs and market swings: Navigating uncertainty with XTB

Recent tariffs have injected volatility into global markets. While a universal tariff pause offered some relief after initial sharp declines, elevated tariffs on China persist, creating ongoing uncertainty.

Current tariff landscape:

  • Baseline Tariff: 10% on most imports.
  • "Reciprocal" Tariffs: Higher tariffs, paused for most countries.
  • China Exception: 125% tariffs.
  • Pre-existing Tariffs: On steel, aluminum, autos, and some goods from Canada/Mexico.

Economic implications

Tariffs can lead to increased costs, reduced competitiveness, supply chain disruptions, and retaliation. Most economists anticipate negative impacts on global economic growth and specific sector vulnerabilities.

Looking ahead

The next 90 days are critical for trade negotiations. The future of tariffs and their market impact remains uncertain, requiring vigilance. The US-China trade relationship is a key factor.

Navigating volatility with XTB:

In this volatile environment, XTB provides essential tools:

Why don’t you react with XTB?

*For monthly turnover equivalent up to 100,000 EUR. Transactions above this limit will be charged a commission of 0.2% (minimum 10 GBP). 0.5% currency conversion cost may apply. Tax treatment depends on your individual circumstances and ISA regulations which may change. Your capital is at risk. The value of your investments may go up or down.T&Cs apply.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

(Source: XTB.com) 

 


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