The news that the US will pause its so-called ‘liberation day’ tariffs for 90 days on most countries – returning the tariff to 10% across the board excluding some carve-outs such as the 25% tariff on autos – has provoked a major relief rally across financial markets. However, the decision amounts to a less bad outcome for the global economy rather than a genuinely positive one. The tariff on Chinese imports will remain at 125%, while tariffs on Mexico and Canada remain at 25%.
In this episode of Bite Sized Economics, Charles Hall and Kallum Pickering discuss market reaction to latest developments and their implications for central banks and global economies.
