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This volatility stems primarily from a renewed tariff conflict initiated by the Trump administration, which solidified a 145% tariff on certain Chinese imports this week. In retaliation, China increased its tariffs on US goods and indicated that it would overlook any additional tariffs, citing a "complete collapse of demand for American exports."
The economic repercussions are becoming evident, with consumer sentiment in the US declining for four consecutive months and inflation expectations reaching heights not seen since 1981, which reflects the growing uncertainty for households and businesses alike.