After a volatile week for global markets, Wall Street
closed higher on Friday, offering a brief reprieve amid ongoing economic
uncertainty fueled by the escalating US-China trade dispute. Meanwhile, the
UK’s FTSE 100 index ended the day down 1.1%, reflecting continued investor
caution across international markets.
The modest rebound in U.S. stocks comes as President
Donald Trump defended his tariff policies, declaring on social media that the
United States is "doing really well on our tariff policy." His
comments follow a 90-day pause in additional U.S. tariff hikes, a move that
markets are closely watching for signs of de-escalation in the trade conflict.
However, tensions remain high. China recently
retaliated by raising tariffs on U.S. imports to 125%, following Washington’s
increase to 145% on select Chinese goods. The tit-for-tat measures have
deepened concerns over global trade stability and economic growth.
Amid the uncertainty, the U.S. dollar has dropped to a
three-year low, as investors weigh the long-term impact of protectionist
policies on the world economy. Analysts say the situation remains fluid, with
financial markets bracing for further volatility depending on the outcome of
upcoming negotiations.
Beyond the trading floors, American
businesses—especially small enterprises—are feeling the pinch. In San
Francisco, Jenny Ngo, owner of Telescope Coffee, says rising import costs are
already hitting her bottom line. Her coffee beans, sourced from Ethiopia and
Guatemala, now face a 10% import tariff, while the cost of Chinese-made iced
coffee cups has spiked overnight.
“We unfortunately project to raise prices again in
order to sustain our business,” Ngo said. “We’ve already noticed fewer
customers in the morning—people are cutting back.”
Small business owners across the U.S. are reporting
similar struggles, citing rising costs and dwindling demand as customers grow
more cautious with spending.
As the U.S. prepares for further negotiations with key
trading partners, economists say the outcome could have lasting implications
for businesses and consumers alike.
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