Latest news with #ObliterationDay
AsiaOne
02-05-2025
- Business
- AsiaOne
How tariffs could shape interest rates in 2025: What Trump's 'Liberation Day' means for Singapore home loans, Money News
Let's talk about something that's quietly making waves in 2025: tariffs. If you've heard the term "Liberation Day tariffs" floating around recently, here's the story. The US has rolled out an aggressive series of reciprocal tariffs under President Trump's administration-targeting China, Asean countries, and even long-time allies like Canada and the EU. While it sounds like something that only affects governments and multinational corporations, the reality is that it could hit your wallet too. Thanks to Singapore's deeply connected economy, these tariffs could ripple into interest rates, inflation, and ultimately, your mortgage. What's happening with tariffs right now? Here's a quick breakdown of what's been implemented so far: A 10 per cent baseline tariff on all imports to the US from all countries Up to 145 per cent reciprocal tariffs on Chinese goods (with China retaliating at 125 per cent) Targeted tariffs on steel, aluminium, semiconductors, automobiles, and pharmaceuticals Potential digital services taxes retaliation aimed at the EU, UK, and Canada This sudden spike in trade protectionism isn't small. The scale and speed of implementation have thrown global trade into chaos. Some economists are even calling it "Obliteration Day," not Liberation Day. So, what do tariffs have to do with mortgage rates? This is where things get interesting. [[nid:717541]] When tariffs are imposed, the cost of imported goods rises. These costs are often passed on to consumers, which drives inflation-not because demand is booming, but simply because everything costs more. Typically, when inflation rises, central banks might hike interest rates to cool things down. But here's the twist: this inflation is artificial, driven by policy rather than a booming economy. As a result, central banks like the US Federal Reserve are cutting rates to support growth instead. UOB now expects the Fed to implement three rate cuts in 2025, compared to just one before these tariffs came into play. Possibly. But even if global rates start easing, don't expect an immediate effect on your mortgage. Banks tend to adjust slowly, and savings are not always passed on to borrowers right away. Why this matters for homeowners in Singapore Singapore is one of the world's most open economies-and we're heavily dependent on external demand, especially from the US In a recent speech that went viral, Prime Minister Lawrence Wong stressed how vulnerable Singapore is to these shifts. He warned that rising protectionism could disrupt our export sectors, weaken investor confidence, and slow down overall growth. UOB's research highlights a few key points: Singapore has the highest exposure to US demand (as a per cent of GDP) among Asean countries Growth downgrades are already underway for Singapore, Malaysia, and Vietnam A slowdown in US demand = weaker exports = potential economic cooling in Singapore If the US enters a tariff-driven slowdown, it could place the Monetary Authority of Singapore (MAS) in a tough position: should they keep rates high to fight inflation, or lower rates to support growth? [[nid:647144]] Will home loan rates in Singapore go down? The US Federal Reserve is expected to cut rates, but mortgage rates in Singapore, particularly those tied to Sora, usually lag behind global moves. On top of that, we're still navigating volatility from the post-2022 inflation period. As of April 2025, mortgage rates in Singapore have been trending downward: Fixed rates are starting from 2.35 per cent Floating rates are starting from 2.43 per cent Several factors are driving this: US Federal Reserve Rate Cuts: The Fed began cutting rates in September 2024 to boost economic growth. Excess Liquidity in Local Banks: Singapore banks are sitting on more deposits than loans, prompting aggressive competition to lend. Decline in Sora: Sora, the benchmark for floating rates, has dropped by about 0.5 per cent since the start of the year. What's the outlook for mortgage rates in 2025? It's hard to say. On one hand, global tariffs could push inflation higher, making central banks cautious about further cuts. On the other hand, if tariffs escalate into a full-blown trade war and trigger a global recession, the Fed might be forced to cut rates further. Locally, MAS's recent monetary policy adjustments reflect a cautious wait-and-see approach. Further developments from global trade talks and MAS policy decisions will be crucial in determining the next moves for mortgage rates. Are more homeowners refinancing? Yes-refinancing activity has picked up significantly. With banks offering attractive rates and promotions, many homeowners are taking advantage to lower their monthly repayments. This trend is especially strong among those who locked in higher rates during the previous interest rate spike. Should you lock in a fixed rate now? This really depends on your risk appetite: Fixed rates offer predictability and protection against future rate hikes. Floating rates could save you money if rates continue to fall-but there's uncertainty around the pace and depth of future cuts. As David Baey, CEO of Mortgage Master, recently shared, there's a chance we could see mortgage rates fall below 2 per cent within the next six months, depending on how the global economy evolves. However, it's also clear that the current environment is highly volatile, and a wait-and-see approach could mean short-term financial pain if floating rates remain sticky. At the end of the day, it's important to assess your personal financial situation carefully. What should you do next? The global outlook is uncertain. Tariffs are shaking up markets. Inflation remains stubborn. Mortgage rates are moving-but not always in ways we expect. In times like these, it's essential to get professional advice. This article was first published in Mortgage Master.
Gulf Today
18-04-2025
- Business
- Gulf Today
Can Democrats and big tech get back together?
Matthew Yglesias, Tribune News Service Despite the various frictions, America's technology sector did pretty well during Joe Biden's presidency — and despite the various warnings about his mercurial opponent, many tech executives supported Donald Trump in his 2024 campaign. After his victory, even more rushed to Trump's side, with Meta founder and CEO Mark Zuckerberg going on Joe Rogan's podcast to talk about his admiration for the president-elect and the need for more 'masculine energy' in U.S. corporate culture. Then came the Liberation Day tariffs, and then Obliteration Day in markets, and finally the Equivocation Day partial tariff rollback. Meanwhile Meta shares are trading below their price on the day of Zuckerberg's appearance on Rogan. It turns out that whatever the merits of masculine energy, a global trade war is not good for the tech industry. The whole episode ought to be an opportunity for a mutual reconsideration from both Democrats and the technology world: How did they come to be so alienated from each other, and isn't it past time for a rapprochement? It's not just that tech benefits, probably more than any other sector, from the globally integrated cooperative economy that Trump disdains. It's that the underlying motives for Trump's trade policies are rooted in nostalgia economics, which is antithetical to any vision of progress. For starters, even though Trump's 'reciprocal' tariff strategy has now been withdrawn, it's notable that his formula simply ignored the existence of services exports. From Hollywood to Silicon Valley to Wall Street, many of America's most successful companies are service exporters. It should be concerning to everyone — especially executives and investors in the service sector — that the US has a president who believes that these industries somehow don't count. Consider that amid the tariff chaos, Trump took the time last week to sign some executive orders that he claims will promote a revival of the coal industry. He rightly pointed out that Democrat-supported initiatives to help retrain miners did not resonate in coal country, where voters preferred his pitch that he would keep the mines open. 'You could give 'em a penthouse on Fifth Avenue and a different kind of job and they'd be unhappy,' Trump said, surrounded by miners. 'They want to mine coal. That's what they love to do.' As an observation about voter psychology, it may well be true — and it may even have implications for trade policy. Communities that have lost factories to China or Mexico don't want to hear that openness to trade makes Americans better off on average. And they don't want sophisticated plans for retraining or economic revival. They just want their jobs back. But as the basis for economic policy, it's a dead end. An approach designed to stop anything from ever changing is irreconcilable with economic growth — and toxic to the spirit of innovation and disruption that is at the core of Silicon Valley. Trump is of course not entirely consistent in his application of these anti-progress views. When it comes to classes of people that he disdains — government workers, academics, researchers — he is happy to see them lose their jobs. But if it's people he has cultural affection for, he is eager to stand athwart history shouting 'no' — supporting dockworkers in their opposition to port automation, for example. A 2017 paper from Stanford Business School found that technology entrepreneurs had broadly liberal views on cultural issues, favored globalization, were open to redistributive taxation, and were extremely hostile to regulation. This worldview is in many ways the opposite of Trump's sentiment-driven, nostalgia-soaked outlook. It broadly favors a competitive economy open to technological change and foreign competition, but with progressive taxation that finances a generous social safety net. That generally tracks the approach to economic policy taken by Bill Clinton and Barack Obama, and — along with Silicon Valley's location in Democratic California — it helped create the tech sector's alignment with the party. During the Biden years, with several notable exceptions, much of the tech world seems to have forgotten exactly how crazy and backward-looking Trump is. Biden, meanwhile, won a Democratic Party primary by promising wealthy donors that he would make them pay higher taxes but would not 'demonize' the rich and that 'nothing would fundamentally change' for them. Leftists weren't happy, but it was a perfectly reasonable pitch. Once in office, however, Biden appointed regulators who weren't just interested in tax progressivity but wanted to rein in the power of large US. businesses. This did not amount to very much in practice, but many tech entrepreneurs and investors found it threatening, insulting or both. Paired with the backlash to the excesses of left-wing cultural politics and Biden's personal lack of interest in technology, the stage was set for a rightward turn. But Trump himself has not changed his spots. He remains hostile to scientific research as well as trade. He's made it harder to hire skilled immigrants while turning America into a markedly less desirable place for foreigners to study. Business leaders did eventually denounce Trump's tariffs, which may have played a role in his announcement of a 90-day suspension. But their initial reluctance to vocally criticize a decision that was catastrophic for their own share prices reveals a deeper concern.
Bloomberg
13-04-2025
- Business
- Bloomberg
Can Democrats and Big Tech Get Back Together?
Despite the various frictions, America's technology sector did pretty well during Joe Biden's presidency — and despite the various warnings about his mercurial opponent, many tech executives supported Donald Trump in his 2024 campaign. After his victory, even more rushed to Trump's side, with Meta founder and CEO Mark Zuckerberg going on Joe Rogan's podcast to talk about his admiration for the president-elect and the need for more ' masculine energy ' in US corporate culture. Then came the Liberation Day tariffs, and then Obliteration Day in markets, and finally the Equivocation Day partial tariff rollback. Meanwhile Meta shares are trading below their price on the day of Zuckerberg's appearance on Rogan. It turns out that whatever the merits of masculine energy, a global trade war is not good for the tech industry.
Yahoo
10-04-2025
- Business
- Yahoo
Opinion - Trump's tariff rollercoaster could tank his presidency
You've got a better chance of predicting when an earthquake will hit California than you have predicting what President Trump is going to do tomorrow — regardless of what he says today. First, he tells us tariffs are on. Then tariffs are off, sort of — and, who knows, he may change his mind again before he sits down for lunch. Stocks are down, then they're up and by the time you read this they may be down again. Who knows? Trump isn't happy unless he's unleashing some kind of chaos on the world. And yesterday, when the president suddenly announced that he would back down on his 'reciprocal' tariffs for 90 days, the S&P 500 took off, rising almost 10 percent in just one day. When he was running for president in 2024, Trump made a promise to the American people — a promise that played as well in diners in Ohio as it did in boardrooms in Manhattan: that he would lower prices and build a booming economy unlike anything we'd seen under President Joe Biden. The pitch was simple. Elect a businessman, not a politician. Elect someone who knows the art of the deal, not the art of government red tape. Prices will drop, jobs will come back and America will be great again. Fast forward — President Trump is back in the White House, and last week he announced what he called 'Liberation Day,' which turned out to be 'Obliteration Day' as the stock markets crashed, with the Dow falling almost 1,700 points. Liberation Day was when he announced a whole array of steep tariffs on friends and foes alike. But you just knew Trump wasn't going to let the markets continue to slide. If that happened, he'd be seen as the villain who drained 401(k) retirement accounts from senior citizens, who just happen to vote in big numbers. Hence, the reprieve he announced yesterday. But his decisions on tariffs have already caused damage — to more than the financial markets. After a few days of devastating loses, Gerry Baker wrote in his Wall Street Journal column that Trump is trashing America's reputation around the and doing 'irreversible damage to the greatest geopolitical brand ever created.' 'Allies — staunchly pro-American friends from Canada to Denmark to Poland — are sullen, angry and scared,' Baker writes. 'Adversaries who have long envied our power and tried unsuccessfully to undermine it, are hugging themselves with joy.' And tariffs are taxes by another name. They don't just punish China, Mexico or Vietnam. They punish Americans who buy things — which, last I checked, is just about everyone, which explains why he's now having second thoughts about his 'beautiful' tariffs. If Trump didn't change course, prices weren't going to come down as he promised; they'd go up. The economy wouldn't get stronger but would likely slide into recession, And here's the political reality: When the economy tanks, presidents pay — and so does their party. It doesn't matter how much they talk about bringing jobs home. Americans may love the idea of long-term strategy, but they vote based on short-term pain. Trump has said that over time tariffs would help bring back manufacturing. That they'd create millions of good-paying jobs here at home. Maybe that would be true. Maybe it's wishful thinking. But people don't live in the long run — they live in the right now. And if the Trump tariffs ultimately wind up staying in place, groceries will cost more — same with appliances, cars and a whole bunch of other things. That's not a winning message. Americans will head to the polls for the midterms in 18 months. And if prices are high and the economy is wobbly, don't be surprised if the Democrats take back the House. The Senate is a steeper climb, but not impossible. And if they pull it off, Trump's second-term agenda will be finished. The big gains in the markets yesterday may be the beginning of more gains, or it could just be what they call 'a bear market bounce' — a short uptick in stocks coming after several devastating down days. So who knows how this will turn out. But Trump's brand has always been tied to the idea that he's a businessman who knows how to make deals. If that narrative collapses, then not only does he lose the political clout that comes with his presidency, his party could be dragged down with him. And if that happens, no amount of spin, no amount of 'rosy scenarios' from the Trump White House would change the facts on the ground. As James Carville once famously said: 'It's the economy, stupid.' Always has been. Always will be. One more thing: When Trump declared that tariff 'is the most beautiful word in the dictionary,' did anyone in his inner circle have the courage — or the common sense — to say, 'Mr. President, this is not a good idea, not the way you're going about it. The way you're doing it will create turmoil in markets around the world and turn our friends into enemies?' Knowing Trump's penchant for surrounding himself with 'yes men' and 'yes women,' the short answer is: not likely. Too bad. Because if somebody had the guts to speak truth to Trump's power, he — and all of us — could have avoided a lot of the needless chaos that he single-handedly created. Bernard Goldberg is an Emmy and an Alfred I. duPont-Columbia University award-winning writer and journalist. He is the author of five books and publishes exclusive weekly columns, audio commentaries and Q&As on his Substack page. Follow him @BernardGoldberg. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
10-04-2025
- Business
- The Hill
Trump's tariff rollercoaster could tank his presidency
You've got a better chance of predicting when an earthquake will hit California than you have predicting what President Trump is going to do tomorrow — regardless of what he says today. First, he tells us tariffs are on. Then tariffs are off, sort of — and, who knows, he may change his mind again before he sits down for lunch. Stocks are down, then they're up and by the time you read this they may be down again. Who knows? Trump isn't happy unless he's unleashing some kind of chaos on the world. And yesterday, when the president suddenly announced that he would back down on his 'reciprocal' tariffs for 90 days, the S&P 500 took off, rising almost 10 percent in just one day. When he was running for president in 2024, Trump made a promise to the American people — a promise that played as well in diners in Ohio as it did in boardrooms in Manhattan: that he would lower prices and build a booming economy unlike anything we'd seen under President Joe Biden. The pitch was simple. Elect a businessman, not a politician. Elect someone who knows the art of the deal, not the art of government red tape. Prices will drop, jobs will come back and America will be great again. Fast forward — President Trump is back in the White House, and last week he announced what he called 'Liberation Day,' which turned out to be 'Obliteration Day' as the stock markets crashed, with the Dow falling almost 1,700 points. Liberation Day was when he announced a whole array of steep tariffs on friends and foes alike. But you just knew Trump wasn't going to let the markets continue to slide. If that happened, he'd be seen as the villain who drained 401(k) retirement accounts from senior citizens, who just happen to vote in big numbers. Hence, the reprieve he announced yesterday. But his decisions on tariffs have already caused damage — to more than the financial markets. After a few days of devastating loses, Gerry Baker wrote in his Wall Street Journal column that Trump is trashing America's reputation around the and doing 'irreversible damage to the greatest geopolitical brand ever created.' 'Allies — staunchly pro-American friends from Canada to Denmark to Poland — are sullen, angry and scared,' Baker writes. 'Adversaries who have long envied our power and tried unsuccessfully to undermine it, are hugging themselves with joy.' And tariffs are taxes by another name. They don't just punish China, Mexico or Vietnam. They punish Americans who buy things — which, last I checked, is just about everyone, which explains why he's now having second thoughts about his 'beautiful' tariffs. If Trump didn't change course, prices weren't going to come down as he promised; they'd go up. The economy wouldn't get stronger but would likely slide into recession, And here's the political reality: When the economy tanks, presidents pay — and so does their party. It doesn't matter how much they talk about bringing jobs home. Americans may love the idea of long-term strategy, but they vote based on short-term pain. Trump has said that over time tariffs would help bring back manufacturing. That they'd create millions of good-paying jobs here at home. Maybe that would be true. Maybe it's wishful thinking. But people don't live in the long run — they live in the right now. And if the Trump tariffs ultimately wind up staying in place, groceries will cost more — same with appliances, cars and a whole bunch of other things. That's not a winning message. Americans will head to the polls for the midterms in 18 months. And if prices are high and the economy is wobbly, don't be surprised if the Democrats take back the House. The Senate is a steeper climb, but not impossible. And if they pull it off, Trump's second-term agenda will be finished. The big gains in the markets yesterday may be the beginning of more gains, or it could just be what they call 'a bear market bounce' — a short uptick in stocks coming after several devastating down days. So who knows how this will turn out. But Trump's brand has always been tied to the idea that he's a businessman who knows how to make deals. If that narrative collapses, then not only does he lose the political clout that comes with his presidency, his party could be dragged down with him. And if that happens, no amount of spin, no amount of 'rosy scenarios' from the Trump White House would change the facts on the ground. As James Carville once famously said: 'It's the economy, stupid.' Always has been. Always will be. One more thing: When Trump declared that tariff 'is the most beautiful word in the dictionary,' did anyone in his inner circle have the courage — or the common sense — to say, 'Mr. President, this is not a good idea, not the way you're going about it. The way you're doing it will create turmoil in markets around the world and turn our friends into enemies?' Knowing Trump's penchant for surrounding himself with 'yes men' and 'yes women,' the short answer is: not likely. Too bad. Because if somebody had the guts to speak truth to Trump's power, he — and all of us — could have avoided a lot of the needless chaos that he single-handedly created.
