ALTERNATIVE MARKETS UPDATE – MID FEBRUARY 2025 & February market update from macro eagle

​Since stepping into office in January 2025, President Donald Trump has been highly active in reshaping US domestic and foreign policies, implementing a range of executive orders with a focus on national security, the revitalisation of the economy, and immigration. While he announced potential tariffs, the pace at which he planned to impose these tariffs is surprising. In February 2025, he announced a 25% tariff on all imports from Canada and Mexico, citing border security and drug trafficking concerns, with Canadian energy exports facing a lower 10% tariff. However, these tariffs are currently suspended for 30 days, and it will be vital to observe whether they will be predominantly used as a tool for negotiations or are intended to be fully implemented. For Canada and Mexico, it could have devastating effects on their currency, as the Chinese Yuan declined significantly. Importantly, China is much less reliant on the US for exports than Canada or Mexico are. Trump also imposed a 10% tariff on all Chinese imports. In retaliation, China announced tariffs on US energy and specific machinery, such as agricultural machinery and large-engine vehicles. Lastly, Trump reinstated prior tariffs of 25% on steel and aluminum imports, bolstering the country’s own industry. Unlike during his first tenure, he also imposed these tariffs on allied nations.

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