New Wave

 

April 2025 witnessed a sharp escalation in global trade tensions, marked by the United States implementing sweeping tariff measures that sent shockwaves through the world economy. Beginning April 10, the Trump administration imposed a uniform 10% tariff on imports from all countries—except China and Hong Kong, which were hit with an extraordinary 125% reciprocal tariff on top of existing duties. This aggressive move, enacted under a national emergency declaration as part of President Trump’s “reciprocal tariffs” agenda, pushed U.S. average tariff rates to their highest level in more than a century. While certain products were exempt or subject to separate conditions, the broad scope signaled a decisive shift toward protectionism.

China responded firmly on April 4, unveiling a series of retaliatory measures. These included a 34% additional tariff on all U.S. imports, export restrictions on key materials such as rare earth elements, the addition of American firms to its Unreliable Entity List, import bans on specific agricultural goods, and targeted investigations into U.S. companies. Eventually, the tariff to the US products reached 125% too. Despite his confrontational stance toward China, President Trump remained upbeat about trade negotiations with other key partners such as India, Japan, and South Korea.

Further uncertainty stemmed from the tense relationship between President Trump and Federal Reserve Chair Jerome Powell. Trump’s aggressive tariff approach risked fueling inflation, while Powell remained focused on keeping inflation near the Fed’s 2% target and preserving financial stability. Their public clash—punctuated by Trump’s threats to remove Powell—rattled investors and contributed to heightened market volatility.

Corporate earnings for Q1 2025 reflected these growing pressures. Firms with heavy global exposure, particularly those dependent on Chinese markets or vulnerable to supply chain disruptions, reported rising costs and increased regulatory risks. The turbulent trade environment and mounting input prices dampened profitability and outlooks across multiple sectors.

Product Recommendation

 

EQUITY FUND
MGSED A	MGSED invests in Sharia-compliant Equities Abroad listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.
MASED A	MASED invests in Sharia-compliant Equities in Asia listed in the Sharia Securities List. Categorized as a Long-Term investment with high risk. Investors bear the risk associated with the equity portfolio.

 

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