A fractured monetary system
US policy is encouraging a transition away from a dollar-led, rules-based order
President Donald Trump’s ‘Liberation day’ tariffs imposed on 195 US trading partners on April 2 were significantly larger and more widespread than most policy-makers and market participants had expected.
The baseline tariffs of 10%, rising to as high as 49% for Cambodia, were tabled using an unorthodox formula (half of the trade deficit for US goods with a jurisdiction divided by total goods imported to the US from that location), with most economists highly sceptical they would result in the US
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