In this week’s Market Review we explore the ripple effects of U.S. President Donald Trump’s aggressive stance on tariffs and immigration, as well as its implications for global and local markets. President Trump wasted no time implementing his hardline policies, issuing a 25% tariff on Colombia for not accepting deported migrants and threatening to escalate it to 50%. This move highlights Trump’s commitment to his campaign promises, but raises questions about the long-term impact on U.S. diplomatic relations and trade dynamics.
Key points discussed:
👉 Geopolitical Tensions: Trump’s tariffs on Colombia, his demands for an end to Russia’s “stupid war,” and potential tariff hikes on major trading partners like China and Mexico are fueling a global risk-off sentiment.
👉 Central Bank Decisions: The Federal Reserve is likely to pause interest rate cuts due to resilient U.S. employment and inflation trends, while South Africa’s Reserve Bank faces a 50/50 decision on whether to cut rates by 25 basis points this week.
👉 Rand’s Volatility: The South African Rand, after briefly strengthening to the mid-18.50s, faces renewed pressure from global uncertainty and awaits clear catalysts to determine its next move. With only one month into 2025, the markets are already bracing for significant volatility.
Geopolitical developments, central bank decisions, and Trump’s policy maneuvers will set the tone for the weeks to come.