{"id":169216,"date":"2024-11-06T12:45:47","date_gmt":"2024-11-06T12:45:47","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/06\/dollar-surges-as-fears-grow-for-world-economy-over-trumps-threat-of-tariffs\/"},"modified":"2024-11-06T12:45:47","modified_gmt":"2024-11-06T12:45:47","slug":"dollar-surges-as-fears-grow-for-world-economy-over-trumps-threat-of-tariffs","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/11\/06\/dollar-surges-as-fears-grow-for-world-economy-over-trumps-threat-of-tariffs\/","title":{"rendered":"Dollar surges as fears grow for world economy over Trump’s threat of tariffs"},"content":{"rendered":"
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The US dollar has surged as Donald Trump secured a return to the White House – but there are fears the British and world economies will suffer from the president-elect’s promises of new tariffs.<\/p>\n

Investors have returned to making “Trump trades” – when they bet on lower taxes and higher interest rates – on the belief he will increase tariffs on foreign imports to protect domestic industries.<\/p>\n

This will push up prices of imported goods and inflation – and increase borrowing and government debt in the US.<\/p>\n

A leading British thinktank said the UK’s already slow economic growth rate is likely to be more than halved if Mr Trump imposes sweeping import tariffs<\/a><\/strong>.<\/p>\n

US election latest – world congratulates Trump<\/strong><\/a><\/p>\n

The National Institute Of Economic And Social Research said growth in the British economy would reach 1.2% in 2025 without US tariffs – but would be just 0.4% if they are implemented as promised by the incoming president.<\/p>\n

Firms will mostly pass import costs to customers, with tariffs likely to be particularly inflationary for US buyers.<\/p>\n

Analysts also said the pledges by Mr Trump are a “threat” to global financial security.<\/p>\n

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Economy won Trump the election, say supporters<\/span>
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Erik Nielsen, of banking group UniCredit, said: “Trump’s fiscal pledges are seriously troublesome – for the US economy and for global financial markets – as they promise to vastly expand an already excessive deficit at the same time as he threatens to undermine key institutions.<\/p>\n

“One must conclude that Trump poses a serious – and so far vastly under-appreciated – threat to the US Treasury market and thereby to global financial stability.”<\/p>\n

US Treasury yields – essentially the rate of interest the American government pays on its debt – have also risen with investors betting the US Federal Reserve will take a more cautious approach to cutting rates in the months ahead.<\/p>\n

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Read more:<\/strong>
Donald Trump wins US election<\/a>
Republicans gain control of Senate<\/a>
America’s night of historic firsts<\/a><\/strong><\/p>\n

US stock markets are expected to be higher when they open on Wednesday – while in Asia, stocks on the Hang Seng were lower over fears Mr Trump could put 60% tariffs on Chinese goods.<\/p>\n

Meanwhile, Bitcoin jumped nearly 8% to a record $75,345 as investors bet on a victory for Mr Trump.<\/p>\n

The oil price has also eased to less than $75 a barrel over expectations a Trump administration will increase drilling and encourage more crude flows in the US.<\/p>\n<\/p><\/div>\n


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The US dollar has surged as Donald Trump secured a return to the White House – but there are fears the British and world economies will suffer from the president-elect’s promises of new tariffs. Investors have returned to making “Trump trades” – when they bet on lower taxes and higher interest rates – on the […]<\/p>\n","protected":false},"author":2,"featured_media":169217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/11\/768x432\/6aa67e5fb8a3a894534fb0a7f6ca540d695b148cdd9089b54af1f96788e53a16_6740628.jpg?20241106114205","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[5676,1933,2622,7743,20545,18165,2888,1734,1052],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/169216"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=169216"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/169216\/revisions"}],"predecessor-version":[{"id":169218,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/169216\/revisions\/169218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/169217"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=169216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=169216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=169216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}