Trump went back to his tariff – but was it harmful?

US president Donald Trump He offered his trading partners – and the financial market – some were charged on Wednesday when he was going back in the part of his tariff policy.

The latest tariffs related to the country announced on April 2 were dive up to 10% for 90 days to buy talks for most countries and territories.

Markets with relief sighed, and with Historical action unfolded on Wall -Rate on Wednesday and transferred to Asian and European Markets Thursday. But analysts point out that the harm of economic and the market can already be done, and it can be difficult to cancel.

“Although it was clear, since Trump’s evidence was re -emerged after the extreme market conditions, which we nominated yesterday morning, Ginny still leaves a bottle of unpredictability,” said a group of economists and strategists Deutsche Bank Research on Thursday.

The remaining 10% tariff is still the biggest campaign for such duties in the decades, and little indicates what trades can accept in the negotiations, which means that the uncertainty is ongoing, they added.

Meanwhile, Caldwell, the American economist Morningstar, suggested that the markets responded too much to Trump’s announcement, warning of economic falls, unless the US president’s tariff policy has changed further.

“The market is too optimistic today if Trump does not announce further decrease in tariffs and reliably refrains from the future increase in retaliation,” Koldwell said in the note on Thursday.

“The average tariff rate today is still about 20%, and the tariff rate in China is approximately 125%, which is actually an embargo,” he said, saying that there will be several settings in the economic forecast, but adding that it is still waiting for “serious inflation” and economic.

Damage caused by uncertainty, and the feeling of firing and changes that have been created by frequent changes in politics affect everything from the US and the country’s broad economy in the global order to stock markets and dollar, analysts note.

In the record, Deutsche Bank Research Economists and strategists noted that despite the fact that the S&P 500 rallied over 9% during the Wednesday session, “it still left the S&P 500 -3.77% below its mutual tariff announcement.”

S&P 500 futures The latter decreased by 2.1% at 9:44 in London.

The US dollar, which was first introduced after the first time -related tariffs were introduced after Trump’s announcement on Wednesday. Since then, he has relaxed again. A Index of dollar The latter was 102.41, which is sharply lower than the highs of about 110 in January.

Chris Turner, Global Market Head at Ing, said the Greenback Index will continue to “trade in the changing range 102.00-103.50”.

“And this can fall below in the coming weeks, if it seems that the mutual tariff shock caused a certain damage to the hard data in the US consumer and business space,” he added.

The wider, macro economic influence has already unfolded, despite the fact that Trump’s move signal that the US administration has at least somewhat reactive in business and markets, George Saraveles, head of the FXCCHE Bank, said on Wednesday.

“Even if the tariffs are constantly suspended, the damage is caused by the economy due to the constant sense of unpredictability in politics, ”he said.

“More structurally, the events over the past few weeks will resume among the world’s economic partners during the upcoming trade talks and indeed for many years. The desire to create greater strategic independence from the United States in all fronts will be here to stay.”

Others, like Jim Caron, the Portfolio Solutions Group Investment CEO in Morgan Stanley Investment Management, believe that markets are ultimately restored.

“We can cure this,” he said CNBC “Squawk Box Europe“Thursday.” It will take a little time and a certain restructuring. “

Caron said he expects Trump over time to take “less hot or more measured approach” to some of his tariff politicians and create “victory” through negotiations. The market volatility was previously caused by the White House without reporting its plans, and what they mean is good enough.

“So, the damage that has been caused is, in fact, a shock of confidence that made people demand a greater discount on buying certain assets, and it can be bonds, and it can also be stocks, and this is what we are experiencing,” Caron emphasized. “But over time – we had previously seen the shocks in the markets – these things have a way of overcrowding and cure ourselves.”