This week marked a significant escalation in the trade war initiated by President Trump, hitting a peak on ‘Liberation Day’. The global stock markets reacted sharply to the new tariffs, resulting in a staggering decline of over 10% and erasing $3 trillion in wealth for investors.
While consumers have yet to feel the full effects of these changes, countries worldwide are swiftly retaliating, with China implementing its own tariffs on U.S. goods. The repercussions may soon reach exporting nations, as this situation continues to evolve.
President Trump’s uncompromising stance has drawn criticism, with evident unrest from both the Republican and Democratic parties. Legislation is reportedly being discussed to reduce the Executive Branch’s power amidst ongoing chaos.
Many hope that, with widespread protests, the administration may eventually be persuaded to adopt a more conciliatory approach sooner rather than later. The impact on commodities has been immediate and severe, notably in the oil sector, where prices plummeted to $62 per barrel—the lowest since August 2021.
OPEC+ has announced plans to increase supply in light of declining global demand driven by tariff concerns. The Baltic dry sea freight index echoed this trend, sliding 3.3% to reach a one-month low, reflecting the overall downturn in global trade.
In the ship recycling market, recent activity has been mixed. Steel plate prices in India continue to rise while falling in China, with stagnant prices observed in Bangladesh and Pakistan.
Ship recycling has ramped up in sub-continent markets, yet deliveries have diminished, with Bangladesh particularly suffering a lack of fresh arrivals. The upcoming Eid celebrations have further restricted activities in Bangladesh, Pakistan, and Turkey, compounding uncertainties.
Overall, while the situation appears grim due to escalating tariffs and trade tensions, a more measured and pragmatic perspective may be necessary to navigate these turbulent economic waters.