Trump’s import tariffs will have global and local consequences

Duties imposed by US President Donald Trump on imports from Canada, Mexico and China have already triggered retaliatory measures which could easily escalate into a global trade war. These tariff hikes will have negative consequences for global inflation, interest rates and growth and it is difficult to see that the US will benefit.
Meanwhile, the South African Reserve Bank decided to cut interest rates by 25 bps, in line with expectations. Although domestic inflation is under control, further interest rate cuts are unlikely in the short term due to the current uncertainty around global trade.
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