Putting macro variables under the microscope
SUMMARY
INTRODUCTION
On 2nd April 2025, a date that Mr. Trump dubbed the “Liberation Day”, a sweeping new tariff regime was introduced creating a swift reaction in the markets in the days that followed with the S&P 500 falling by nearly 12%. This led to a tit-for-tat escalation by many of the major trading partners of the U.S. such as China and Canada. Even after four months of multiple negotiations and pauses, the tariff saga still remains a dynamic and expanding issue.