True to his word, President Donald Trump fired the first salvo and imposed tariffs on the largest trading partners of the U.S. – China, Canada and Mexico. Although the Trump administration negotiated with Mexico and Canada to delay tariffs by one month, immediate retaliatory measures from China have fed fears of an impending trade war, capable of upending the global economic order.
An escalation in the trade war will result in higher inflation and a slowdown in the easing of interest rates. This will have a direct effect on the capital markets as well, with dwindling revenues and profits adversely affecting share prices.
