Terrene Globe News

On March 26, 2025, President Donald Trump has unveiled a series of fresh tariffs put on various countries and sectors that have extensive consequences on international commerce and the world economy.

Venezuelan Oil Buyers Tariffs

America has introduced “secondary tariffs” to nations purchasing oil or gas from Venezuela. Effective April 2, imports of goods from these nations would incur a tariff of 25%. The move is intended to pressure other countries to reduce assistance to President Nicolás Maduro’s administration by breaking its primary revenue stream. The analysts indicate that tariffs are easier to apply than traditional sanctions and spread broader economic impacts. Problems of enforcement may, however, arise with practices like hiding cargo.  Venezuela and China condemned the move, alleging violations of international trade rules. ​


Future Reciprocal Tariffs

President Trump has indicated that, from April 2, 2025, the administration will be imposing retaliatory tariffs on countries with whom the U.S. has longstanding trade deficits. The initial targets could be countries with suspect trade practices, including Canada, the European Union, India, and Brazil. Crucial areas that could potentially be hit are dairy imports, auto imports, pharma, and ethanol. The administration aims to address perceived trade imbalances and protect domestic businesses by doing so.


Auto Tariffs in the Offing

The government is also targeting auto import tariffs, which could be as high as 25%. This followed a 2019 probe that can be used to approve such measures. Top auto-exporting countries such as Mexico, Japan, South Korea, Canada, and Germany are set to lose much from it. While Mexico and Canada were in the mix for exemptions, they now stand to expire in 30 days. ​


Global Economic Impacts

The Organisation for Economic Co-operation and Development (OECD) warns that the tariffs hikes would curb economic growth in the U.S., Canada, and Mexico and drive up inflation. The OECD also notes that such measures have significant implications for world trade patterns and economic stability. ​

In response to these measures, countries like Vietnam and India are considering shifts in their trade policy. Vietnam will cut tariffs on several U.S. products and grant licenses for services like Starlink, potentially in response to the impact of future U.S. tariffs. Similarly, India is considering slashing its tariffs on over half of its U.S. imports to protect its exports from potential U.S. tariff actions.

These tariff announcements have caused uncertainty in global economies, affecting various industries and triggering international responses. Businesses and consumers must keep themselves informed of these developments, as they have the potential to affect economic conditions and trade relationships in the months ahead.

By Editor-in-Chief, Timothy Gocklin, MBA, MSF

Up to March 26, 2025, the federal funds rate has been maintained by the Federal Reserve at between 4.25% and 4.5%. In its most recent Federal Open Market Committee (FOMC) session of March 19, 2025, the Fed projected two interest-rate cuts later in the year, and adjusted its economic forecast to account for softer growth and rising inflation expectations.

Austan Goolsbee, head of the Federal Reserve Bank of Chicago, said he expects interest rates “considerably lower” in 12 to 18 months. But he added that economic dangers, particularly from recent tariff moves, might push back the timing of these reductions.

Neel Kashkari, Minneapolis Federal Reserve Bank president, urged the Fed to maintain the present interest rate for some time amid uncertainty over tariffs by  President Trump. The tariffs would either be increasing expenses, demanding higher rates, or slowing growth, which would require lower rates.

In the mortgage market, the average rate of a 30-year fixed mortgage is 6.99%, which is a decline of 0.08 percentage points from last week.
Mortgage News Daily

In brief, while the Federal Reserve has left the federal funds rate stable, projections indicate potential rate cuts later this year. Economic unknowns, particularly on trade policies, may influence the timing and magnitude of these adjustments.

By Editor-in-Chief Timothy Gocklin, MBA, MSF

A major teachers’ union is suing to force the Trump administration to revive low-cost student loan repayment and forgiveness programs. The American Federation of Teachers (AFT) filed the motion in federal court, claiming that the Department of Education is required to offer income-driven repayment (IDR) plans, which help borrowers pay according to income and qualify for loan forgiveness.

The issue began when the Trump administration instructed loan servicers to stop processing IDR applications and removed application forms. The move was in response to a court ruling that reversed the Biden-era SAVE plan, but it impacted other repayment plans indirectly targeted by the decision. Borrowers couldn’t enroll, switch plans, or recalculate their payments as a result. Many were left with greater-than-anticipated monthly payments.

The AFT’s lawsuit cites real problems, such as educators and public servants on the verge of loan forgiveness who cannot proceed because their applications were blocked. Some borrowers have had their payments increase to unrealistic amounts, and others fear defaulting on their loans.

In response, the Trump administration announced that it would reinstate IDR applications by March 26, although they will not begin to process them, leaving many of the borrowers financially uncertain. The next legal hearing is April 17, with the fate of loan repayment programs hanging in the balance.

By Editor-in-Chief Timothy Gocklin, MBA, MSF

A few sellers in Southwest Florida are dropping prices to lows not experienced in over a decade, says Florida Gulf Coast University professor of real estate Shelton Weeks. He compared the times to the aftermath of the 2008 financial crisis, when house prices were discounted deeply.

During the pandemic, Florida’s housing market boomed as people from other states moved there for good weather, lower taxes, and lower-priced homes. Florida built more houses than any state to satisfy demand, but now that working from home is declining and the pandemic is no longer ongoing, fewer people are moving, and houses are now in surplus.

In contrast, many Florida residents are also shouldering added costs, including homeowners association (HOA) charges, insurance premiums, and the heightened risk of hurricanes and other natural catastrophes. Therefore, supply for sale of houses has seen record highs. According to Redfin, there were 222,927 houses available for purchase in February—a little more than 18% greater than previous year. But with mortgage rates still in the 6% to 7% range, buyers are waiting, and home sales are slowing.

The trend is especially noticeable in Southwest Florida, where sellers are lowering prices to attract buyers.

Tampa: 32.3% of homes saw price cuts in February, though the median home price still rose 5.4% to $450,500.

Cape Coral: Almost half (44.9%) of homes saw price cuts, with the median price dropping 2.5% to $390,000.

Fort Myers: Home sales fell by nearly 25%, and 41.5% of listings cut prices. The median price fell to $382,500.

Naples: While the sales fell by 7.8% and 38.7% of listings cut prices, the median home price increased 43% to $1.2 million.

Punta Gorda: Home sales improved by just 1.7%, but prices fell significantly—by 35.7% to $360,000.

With so much inventory on the market, Florida is presently a buyer’s market, and buyers are able to take the upper hand in negotiations. Nevertheless, tight mortgage rates and high house prices still keep many consumers on the sidelines, forcing sellers to reduce their asking prices.

To entice purchasers, several Florida builders are currently providing unique incentives. Real estate expert Nick Gerli even cautioned that the market is beginning to look like 2008, at least for builders who are having a hard time selling their inventory.

By Editor-in-Chief, Timothy Gocklin, MBA, MSF

U.S. stock futures dropped modestly Wednesday morning, Treasury yields and the dollar remained stable. Investors prefer more clarity regarding President Donald Trump’s tariff approach as well as closely watch for key inflation numbers later this week.

On Tuesday, stocks rose modestly, with the S&P 500 gaining 0.16% for its third day of gains in a row. Investors hope Trump’s move April 2 to impose tariffs on some products from certain trading partners will have limited reach. But Trump has sent mixed signals—sometimes suggesting he is open to negotiating but maintaining there will be “few exceptions” to new tariffs.

This uncertainty, along with a weaker stock market and decelerating economy, has rattled consumer confidence. Consumer confidence reached an all-time low in more than four years, according to the Conference Board’s recent report. Investors will certainly react to any fresh tariff news today, but they will also consider tomorrow’s jobless claims and economic growth reports, and Friday’s inflation report.

In commodities, copper prices set an all-time high in U.S. trading but plummeted in London hours after Trump declared he would levy tariffs on the metal soon. Treasury bond yields edged higher after there was aggressive demand for new government bonds. The 2-year Treasury note was at 4.007%, up from auction levels of 3.985%, and the 10-year Treasury yield dipped to 4.323% as New York trading began.

Conversely, the U.S. dollar steadied at 104.212 against a basket of major currencies.

When Wall Street trading commences, futures forecast a lower opening of major indexes. The S&P 500 is expected to open approximately 14 points lower, and the Dow Jones Industrial Average is plummeting by 85 points. The Nasdaq, which has a focus on technology stocks, is threatening a 60-point fall, with Tesla, Nvidia, and GameStop being among the most actively traded stocks prior to market opening.

By Editor-in-Chief, Timothy Gocklin, MBA,MSF