The implications for markets of Trump's tariff shocks
Dr Vania Stavrakeva gives her views on the implications of the tariff shock for global markets
At the beginning of April, US President Trump followed through on his campaign promise to raise tariffs on US trading partners. This has taken the average effective tariff rate to around 23 per cent.
Global financial markets have responded with a round of sell-offs, reflecting the tremendous uncertainty of these actions, which are becoming more complex every day, as underscored by the 9 April announcement that so-called 'reciprocal' tariffs would be paused for 90 days for most countries.
In an interview on BBC Radio London, London Business School's Vania Stavrakeva said:
"There are two shocks that markets are pricing in. One is going to work as a negative supply shock, which is very similar to the negative oil supply shocks that we saw with the war in Ukraine."
To listen to the full interview, click here