0939 GMT - The combined 54% tariff on Chinese goods to the U.S. makes any U.S.-China trade almost prohibitive, and is unlikely to be in place over the long term, Invesco global market strategist David Chao says in a research note. Trump's "Liberation Day" levies aren't the final chapter in the tariff story, as Invesco expects countries to begin negotiating in earnest with the White House to reduce the tariffs in return for some concessions. However, the longer the tariffs are in place, the more sentiment will be hurt, weighing on capital expenditure in Asia and household consumption in the U.S., Chao adds. Asian central banks will likely cut rates more aggressively than previously anticipated to counter the higher-than-expected Trump tariffs, he adds. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

April 03, 2025 05:39 ET (09:39 GMT)

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