Trump's Tariff Threats: Bluster or Reality?
In a recent research report, Nomura analysts have suggested that U.S. President Donald Trump is unlikely to follow through on all his tariff threats. This assessment comes after a one-month delay in imposing auto tariffs on Canada and Mexico, with signs indicating that Trump may abandon the proposed 25% tariffs on these two countries.
Trump has been known to use tariffs as a negotiating tool, which can lead to fluctuations between escalation and de-escalation in trade conflicts. However, Nomura Securities has expressed skepticism about a rapid easing of the situation, citing Trump's willingness to escalate trade conflicts despite market weakness and volatility during his first term.
This analysis highlights the uncertainty surrounding Trump's trade policies and the potential impact on global markets. As the U.S. continues to engage in trade negotiations with various countries, investors and businesses alike are closely monitoring the situation for any signs of further tariff actions or potential resolutions.
