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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-reprieve-fails-to-quell-trade-jitters-as-experts-warn-of-prolonged-uncertainty/
President Donald Trump’s eleventh-hour decision to delay sweeping tariffs on Mexican and Canadian goods has temporarily averted an immediate trade crisis but done little to ease mounting fears over the destabilizing ripple effects of his protectionist tactics, analysts warn.
The 30-day pause, announced after talks with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, marks the third such postponement in two weeks—a pattern critics argue undermines U.S. credibility while keeping businesses and markets in a chokehold of unpredictability.
“This is a stay of execution, not a pardon,” said Nigel Green, CEO of deVere Group, a global financial advisory firm. “Tariffs, whether imposed or merely dangled as a threat, inject volatility that markets despise. Without resolution, supply chains remain paralyzed, investment stalls, and economic planning becomes a guessing game.”
The reprieve follows Mexico’s pledge to deploy 6,000 National Guard troops to its northern border, a concession viewed as a political win for the Trump administration. Yet the move underscores how trade policy is increasingly weaponized to extract non-economic demands, blurring lines between commerce and geopolitics. Meanwhile, existing tariffs on $200 billion worth of Chinese goods are set to escalate this week, further complicating the global trade landscape.
Markets reacted with fleeting relief, but underlying tensions persist. The S&P 500 and Dow Jones wavered amid the news, reflecting investor skepticism that the tariff truce signals a broader détente. Analysts note that repeated delays risk eroding the potency of Trump’s threats, a tactic that initially shocked trading partners into compliance but now risks being perceived as hollow. “There’s a diminishing returns effect here,” said Claudia Sahm, a former Federal Reserve economist. “Each delay chips away at the credibility of future threats, while the cumulative uncertainty corrodes business confidence.”
For industries reliant on North American supply chains—automakers, agriculture, and manufacturing—the rollercoaster of tariff deadlines has forced costly contingency planning. Companies like General Motors and Ford have already absorbed billions in losses from earlier trade disputes, with some shifting production to Asia to hedge against further disruptions. “You can’t build a business model on tweets and temporary fixes,” said a Detroit-based auto executive, speaking anonymously. “Every delay just kicks the can down the road, leaving us in perpetual limbo.”
The political calculus behind Trump’s strategy remains opaque. While some advisers argue the threats pressure allies to concede to U.S. demands—such as stricter labor provisions in the USMCA trade pact—others warn the approach could backfire. Mexico and Canada have signaled growing fatigue with what they view as economic strong-arming, with Ottawa quietly exploring stronger trade ties with the EU and Asia as a buffer.
Investors, meanwhile, face a precarious balancing act. Green urges diversification to mitigate exposure to trade-driven volatility, which has already contributed to sluggish global growth forecasts. The IMF recently downgraded its 2024 outlook, citing tariff wars as a key drag. “Portfolios must be resilient to geopolitical shocks,” Green stressed. “This isn’t a passing storm—it’s the new climate.”
As the White House pivots to its next showdown with China, analysts caution that temporary pauses won’t resolve systemic risks. “The world is learning to live with uncertainty,” said Ian Bremmer, president of Eurasia Group. “But markets aren’t built for perpetual crisis mode. Eventually, someone blinks—or everything breaks.” For now, businesses and investors brace for the next tweet, tariff threat, or truce, knowing the reprieve may be as fleeting as the headlines announcing it.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-reprieve-fails-to-quell-trade-jitters-as-experts-warn-of-prolonged-uncertainty/
