13th April 2025
Smartphone and Electronics Tariff Uncertainty:
On Friday night, the Trump administration introduced a temporary exemption for smartphones, laptops, and other consumer electronics from tariffs; however, it noted possible separate, semiconductor-related tariffs in a month or two.
Today, Commerce Secretary Howard Lutnick brought up the potential return of tariffs on these products, creating uncertainty for businesses.
The tariff rollout has caused turbulence in US markets, including a sell-off in the $29 trillion Treasury market.
Pension Funds Reassess US Private Market Investments:
Major pension funds from Canada and Denmark are halting or reassessing investments in US private markets due to geopolitical instability and Trump's erratic policies.
Concerns include losing tax exemptions for foreign government pension funds and geopolitical tensions, such as Trump's pressure on Denmark over Greenland.
Some Canadian funds expect their US exposure to remain unchanged, but others are considering reducing strategic exposure to US assets within six to twelve months.
Treasury Market Volatility:
The 10-year Treasury yield rose sharply this week, marking the biggest increase since 2001, driven by Trump's unpredictable tariff policies.
Liquidity in the Treasury market worsened significantly, with market depth running 80% below normal averages, amplifying volatility.
Analysts warned of a global loss of faith in US policymaking and the Treasury market as foreign holders sold off American assets.
News written by Iskander Shyngyssov | Published by Zhangir Zhangaskin
