President Trump Doubles Down on Tariffs Without Allaying Policy Uncertainty

President Trump's unveiling of sweeping new tariffs on America's global trading partners yesterday represents a significant escalation in the U.S. administration's confrontational approach to trade.

Key highlights include:

-- The Trump administration plans to impose a 10% universal tariff in addition to "reciprocal" duties over the next week.

-- The tariffs announced yesterday, combined with previously announced tariffs, will lead to slower growth and higher inflation in the U.S.

-- Ongoing trade policy uncertainty will act as a headwind to investment and damage near-term growth prospects.

"The tariff plan, if implemented, is bound to slow economic growth, raise prices for consumers and firms, and decrease household wealth," says Michael Heydt, Senior Vice President - Sector Lead, Global Sovereign Ratings. "Moreover, many firms will likely remain hesitant to commit to major investments in the near term, as the tariff announcement is unlikely to quell policy uncertainty."