Part 3/8:
Market responses to these mixed signals have been sharp, with the S&P 500 rallying nearly 2% following Besson’s comments, yet still remaining over 12% below February highs. The overall message remains uncertain, as the White House insists that President Trump will be the one to announce any policy shifts, leaving the market in limbo.
The Effect on Global Supply Chains and Businesses
Businesses worldwide are feeling the strain. Industry players like German shipping giant Hapag-Lloyd report nearly a third of US-bound shipments from China have been canceled. Global supply chains are under immense pressure due to the combined impacts of tariffs, higher steel, aluminum, and auto duties, and the threat of additional levies, such as impending EU tariffs threatening 20%.