As the global economy continues to grapple with the ongoing COVID-19 pandemic, geopolitical tensions have once again come to the forefront. In a series of recent announcements, US President Trump has unveiled new tariffs on various goods, including pharmaceuticals, kitchen cabinets, bathroom vanities, and heavy trucks. Meanwhile, the EU has plans to impose tariffs on Chinese steel and related products. These developments have sparked concerns about a potential shift in the global economic landscape, with far-reaching implications for businesses and investors alike.

In a surprise move, Trump signed an executive order targeting TikTok, a popular social media platform owned by Chinese company ByteDance. While the exact details of the order are unclear, it is believed that Trump had positive talks with Chinese President Xi Jinping and that China is “fully on board” with the new measures. This development has raised eyebrows, given the complex web of trade relations between the US and China.

The impact of these tariffs and trade tensions on global markets has been significant. APAC stocks traded mostly lower after a subdued performance throughout the day, with European equity futures indicating a slightly firmer cash open. The Euro Stoxx 50 future is up by 0.4%, following a 0.3% decline in cash on Thursday.

Looking ahead, key economic indicators such as US PCE (August) and University of Michigan Final (September) will provide valuable insights into the health of the global economy. The ECB’s Cipollone, Lagarde, Fed’s Barkin, Bowman, and supply from Italy are also factors to consider in the coming days.

The latest tariffs and trade tensions between the US and China, as well as the EU’s plans to impose tariffs on Chinese steel, highlight the complex nature of global economic relations. As businesses and investors navigate these challenging waters, it is crucial to stay informed about the latest developments and their potential impact on the global economy.