Warnings from Fed members, new retaliations against the US, Putin's economic message: What’s happening in global markets?

President Donald Trump's decision to impose a 25% tariff on imported cars has reignited discussions not only on global trade balances but also on monetary policies. As Fed officials issue inflation warnings regarding this decision, retaliation signals are rising from key trading partners such as Canada and Japan. Meanwhile, the U.S. halting its financial contributions to the WTO and plans for downsizing public institutions indicate a significant transformation in the country's domestic policies.

Boston Fed President Susan Collins stated that the newly announced tariffs will likely raise domestic inflation in the short term, leading to an inevitable direct impact on prices, although this effect is expected to be temporary. Richmond Fed President Tom Barkin emphasized that automotive companies may face tough choices between raising prices, sacrificing margins, or cutting production costs. These developments contribute to ongoing uncertainty in consumer pricing in the U.S.