Customs chaos under Trump: Markets breathe a sigh of relief, experts warn of long-term damage!

On April 16, 2025, US President Donald Trump announced that he would suspend country-specific tariffs for a period of 90 days. During this time, only the universal basic tariff of 10 percent applies. However, China is exempt from this regulation. This announcement caused the S&P 500 to jump more than 9 percent on April 10, 2025. Despite the positive market reaction, experts warn that this euphoria may be premature as fundamental uncertainties remain and investors are increasingly experiencing a loss of confidence.

The average tariff rate remains high and analysts see a “significant increase in inflation” and economic slowdowns as a possible result. The US dollar is under pressure: after Trump's withdrawal it was able to gain briefly, but quickly lost value again. ING's Chris Turner sees further downside potential for the dollar, while Deutsche Bank's George Saravelos warns of lasting economic damage from political unpredictability. In addition, experts believe that the events of the last few weeks could have long-term effects on global economic relations, such as finance.net reported.

Long-term perspectives and current developments

The relevance of tariffs for international trade relations is also reflected in current political developments. Punitive tariffs on European cars were recently announced in the USA in order to reduce the trade deficit. Historically, tariffs have played a critical role in U.S. trade policy since the 18th century, such as the Smoot-Hawley Tariff Act of 1930, which contributed to the Great Depression. Under Donald Trump's administration, punitive tariffs on steel and aluminum were introduced in 2017, which led to a global trade conflict. From April 2025, new tariffs will also apply to imported cars from the EU, which has already led to nervousness on the international stock markets broker-test.de reported.

As a result of these developments, the Dow Jones fell by around 3 percent after the announcement of the auto tariffs. Companies such as Ford and General Motors were particularly affected. The S&P 500 is showing high volatility and companies with strong exports are suffering from the announced measures. In Europe, the DAX fell 5 percent, with German automakers such as Volkswagen, BMW and Daimler also hit hard. The automotive, technology, materials and consumer goods sectors are particularly under pressure from the tariffs, and there are concerns that some companies may move their production facilities to the US to avoid the tariffs.