Markets are awaiting Trump’s customs decisions on April 2

Global markets are in a state of intense anticipation with the approaching April 2, the date that may witness the start of the implementation of new customs decisions by the American administration, amid the escalation of warnings of the effects of these policies on global economic growth.

This anticipation comes after a series of threats made by US President Donald Trump to impose customs duties on a number of major commercial partners, including the European Union, Canada, Mexico and China, as part of what he described as “liberation day” for the United States. These procedures are expected to include identification of imported cars, in addition to reviewing other tax policies such as value -added taxes.

Meanwhile, the positions of US administration officials regarding the economic feasibility of the expected decisions varied, amid reports that some fees can be postponed or reduced, which was reflected in the performance of the markets, as the Standard & Poor’s index fell by 4.6%, and the Nasdaq index with more than 10% during the first quarter of the year.

Commenting on this, the market expert, Mohamed Said, told Sky News Arabia that the market is accustomed to these threats, which are often met with reprisal fees, likely that the impact of the next round of the fees is less intense compared to the first wave that caused a great shock. He added that the markets absorbed part of these effects and that negative performance may continue, but at a weaker pace.

In an attempt to alleviate the weight of these policies, Trump pointed out in previous statements that some countries can exclude or postpone their implementation, which gave the markets a glimmer of hope that the next steps would be more flexible.

In the same context, Joe Yarq, head of the global market department at Cedra Markets, stressed that the expected customs duties may be selective, not comprehensive, and therefore its effect will be limited. He added that the markets are able to adapt to these variables, especially with signs of alleviating tax and organizational restrictions in the future to support the American economy.

According to the federal reserves, the economic slowdown may be associated with an increase in inflation rates, which puts the American economy in front of complex challenges during the next stage.

Analysts believe that the final reactions to the markets will become clear after the official issuance of US decisions, noting that the second half of the year may witness a gradual improvement in performance, especially if Washington has headed towards motivational policies that support the private sector and reduce the current fees