In a significant move affecting international trade dynamics, U.S. President Donald Trump has expanded tariffs on steel and aluminum imports by 25%, nullifying trade agreements with key allies, including Australia. This decision, announced on Tuesday, has sent ripples through global markets, influencing currency exchanges and commodity prices. As geopolitical risks intensify, the safe-haven commodity, gold, has experienced a notable price increase, reaching an all-time high of over $2,900.
Meanwhile, Danish consumers have kicked off the year with a spending increase of 7% in January compared to the same period last year, excluding energy costs. Despite the overall rise in consumer spending, categories such as clothing, footwear, and electronics underperformed. Conversely, smaller service sectors like theatres and tourist attractions saw robust growth, with cinema attendance significantly higher than last year.
The expansion of U.S. tariffs has affected currencies as well. The Japanese Yen maintained its strength against the U.S. Dollar during the Asian session on Tuesday, although it lacked significant momentum for further gains. In contrast, the Australian Dollar weakened against the U.S. Dollar, experiencing increased downward pressure.
Danish retail spending rose by 2.1% in January, driven by higher expenditure in groceries, sporting goods, and cosmetics stores. When adjusted for inflation, spending excluding energy saw a 5.3% increase. Notably, Danes spent over 21% more on streaming services than last year, reflecting a real growth of 13%.
While travel spending remained relatively steady with nominal growth at around 0%, real spending in restaurants and hotels surged by over 8% in January. This trend highlights a shift in consumer preferences toward dining and hospitality experiences.
As gold prices soar beyond $2,900, the commodity's allure as a safe haven intensifies amidst escalating geopolitical tensions. Market analysts attribute this surge to uncertainties surrounding trade policies and international relations.
The implications of President Trump's tariff expansion are profound. By nullifying agreements with allies like Australia, the U.S. administration has introduced new variables into global trade equations. These developments have left markets adjusting to the evolving landscape.