Overview

• The state of California has filed a lawsuit against the federal government, arguing that President Trump's tariffs are illegal without Congressional authorization.
• U.S. tariffs include a 10% minimum on all imports and up to 145% on Chinese goods, prompting significant economic and trade disruptions globally.
• China has retaliated with 125% tariffs on U.S. goods and export restrictions on critical raw materials, further straining supply chains.
• The WTO projects a contraction in global trade by 0.2% to 1.5% and a sharp decline in North American exports and GDP growth to 0.4% in 2025.
• The credit-rating agency Scope warns of a potential downgrade of the U.S. credit rating due to prolonged trade tensions and economic uncertainty.