Trump's customs policy: The stock markets fall down, the US economy wanks!

Trump's customs policy: The stock markets fall down, the US economy wanks!

The economic situation in the USA is tense and shows alarming signs of an impending crisis. President Donald Trump's aggressive customs policy leads to a dramatic decline in the stock markets and causes experts to question the stability of the US economy. According to Krone+, the Tesla share has come under pressure and has had a severe decline from its maximum. Elon Musk himself assessed the situation of his companies as difficult, which further fueled speculation about the high -finance brand. While the stock value of Tesla has dropped from $ 480 to currently $ 21, in particular, investors feel painful losses.

At the same time, the weaker US dollar, who is sought by Trump, proves to be a double-edged sword. Although the President had hoped that devaluation of the dollar would help the exporter, Business Insider Distrust of the US economy is based. The US dollar index has dropped to the lowest level since November and has lost 4.5% since the high in January. Analysts warn that this decline not only reflects the uncertainty of the market participants, but also stirs up the concerns about the US economy. Trump's decision to impose 25% tariffs on goods from Canada and Mexico as well as additional taxes on Chinese products has contributed to this loss of trust.

Trust of investors wanks

Analysts like George Saravelos from Deutsche Bank and Matthew Hornbach by Morgan Stanley think that the latest developments indicate an erosion of "US conceptism". Turbulent markets and shrinking growth forecasts could be expected that the dollar will lose its status as a leading world currency. Despite Trump's efforts to keep the dollar as a dominant reserve currency, signs of uncertainty and a growing discrepancy between the interest rates of the Federal Reserve and the European Central Bank show that the times of the dominance of the US economy could be over. The market participants could increasingly tend to put on the euro and the British pound, which would further increase the pressure on the dollar.