CNBC Daily Open: Trump Classhes on Foreign Policy, Wields Economic Threat

To an economist, it might seem Questionable for a Country to Impose Tarifs Price Remain Stubbornly High and Consumer Sentiment is Downbeat.

That’s trust tariffs are “a tax on goods,” as warren buffett describes them, adding that they are “an act of war, to some degree.” In other words, they generally increase the cost of important good. Companies would eater try absorbing the expense, which means a drop in revelation, or pass it to consumers, possibly triggering an upward shock in history.

But us President Donald Trump Said Tariffs on Canada and Mexico Are Scheduled to Go Into Effect Tuesday. His administration is also insisting Such Levies will not increase inflation, while encouraging allies to introduce tariffs on china as well.

There has been a lot of talk about us exceptionalism last year, in reference to its economy and financial markets. With the country’s slowdown in both aspects so far in 2025 – as well as it is about Pivot Pivot Away from European Union Allies in Foreign Policy Regarding Russia and Ukraine – The theme Remains in 2025.

Trump-Zelenskyy Clash
Ukrainian president Volodymyr zelenskyy left the white house on Friday afternoon without a deal with the us, following a Televised Explosive Clash With us President Donald Trump in the Oval Office. Trump found the tone and body language of zelenskyy objectionableThe White House Told CNBC. But zelenskyy said He doesn’t open more trump an apologyIn response to a question from a fox news anchor. After that Diplomatic Fiaasco, Zelenskyy Was welcomed warmly by British prime minister keir starmerWhile Vice President JD Vance Faced Protestors during a ski trip in vermont, US

Bessent Urges canada to follow suit on china tarifs
Us Treasury Secretary Scott Bessent said in a Bloomberg interview on Friday that mexico proposed to match the trump Administration’s tarifs on China, and Urged canada to follow suitChina’s’S Ministry of Commerce Said Friday that it “Firmly Opposes” Trump’s Move and vowed retaliationIf necessary. On Sunday, Bessent said Tarifs are unlikely to raise inflation Partly because china will “eat any tariffs.” Separately, warren buffett, in a new documentary, described tarifs as “a tax on goods“And” an act of war, to some degree. “

Us economy on course to shrink
The US Federal Bank of Atlanta’s Gdpnow Tracker of Incoming Metrics is indicating that Us gross domestic product is on pace to shrink by 1.5% For the January-Through-March Period, According to an update posted Friday morning. Fresh indicators showed that Consures Spent Less Than Expected DURING DURENTED DURANTED DURANTED DURANTED DURATED

Accelerating factory activity in china
China’s factory activity in February expanded At Its Fastest Pace in Three Months, According to the Caixin/S & P Global Manufacturing Purchasing Manners’ Index, which came in at 50.8. That’s higher than the reates poll forecast of 50.3 and the 50.1 reading in January. The official manufacturing PMI, which came out saturday, also showed factory activity growing in February. A Figure Above 50 Indicates an expansion in activity.

Red February for Us Markets
Major US Benchmarks Climbed more than 1% FridayBut that wasn’t enough to save them from ending februry in the red. The Nasdaq composite was the Worst Performer for the month, Losing Nearly 4%. Asia-Pacific Markets Mostly Rose MondayHong Kong’s Hang Seng Index Dipped 0.25% even as shares of china’s largest bubble tea chain Mixue surgged more than 40% on its first day of trading,

Us strategic crypto reserve
Trump Announced in a Truth Social post on Sunday the creation of a Strategic Crypto Reserve for the UsIt will include bitcoin and ether, as well as xrp, solana’s solken and cardano’s ada, and is the first time trump has Specified his support for a crypto “Reserve” “Stockpile.” The Former Assumes Buying Crypto in Regular Installments, While The Latter Would Simply Not Sell Any of the Crypto Currently Held by the Us Government.

(Pro) Falling Benchmarks, More Tariffs Due
All Major Us Benchmarks Fell for the Month in February. Heading Into March, Trump’s Tariffs on Canada and Mexico, and Additional Ones On China, will kick in on tuesday – If he sticks to his word – and the US jobs report for February comes out Friday. Here’s what else to Look out for this week,

As Trump Breaks Ranks With Europe, Are Asia-Pacific Allies Next?

Just over a month into the second term of Donald Trump’s presidency, US Foreign Policy has ben Upended, Especially in Europe. The us has aimed tariffs at neighbors, lambasted traditional allies in europe and take a pro-russian stance toward ukraine in an about-face from the previous administration.

However, “Us-friendly asian elites should not assume that us assets will flow from being downsized in europe to them in asia,” Wrote Adam Garfinkle, FORMER DISTINGUH VISTINGURESE FORMERESE VISTINGURESE FOLOLOH AATION S. Rajaratnam School of International Studies. Asian allies should also also consider that a diminished us global military footprint could make the logistics of us security Pledges in Asia More Dificult, Garfinkle Wrot.