Economy

China ready for economic shocks ahead of US tariffs

Chinese Premier Li Qiang warns of growing global uncertainty ahead of new US tariffs but stresses that the country is ready for “unexpectedly large shocks”. Bloomberg reports.

– It is now more important than ever for countries to open their markets and for companies to cooperate and share resources, he says.

China is trying to attract investment after a record low inflow in 2024 but is already affected by reduced trade with the US. Analysts warn that an escalating conflict could force the country to new stimulus to reach its growth target of 5 percent.

Copper prices surge after Trump’s threat of new tariffs

Copper prices have soared and passed $10,000 per tonne on the London Commodity Exchange, which is the highest level in five months. The rise is mainly due to US President Donald Trump issuing a presidential order to investigate the possibility of imposing import tariffs on the metal, the Financial Times writes.

The uncertainty has caused traders to stockpile copper to avoid future cost increases, SP Angels analyst John Meyer tells the newspaper.

– Traders are rushing to deliver metal to the US.

At the same time, the market is being affected by low processing fees, which is creating problems for smelters globally. Analysts are warning of an upcoming copper shortage, driven by rising demand from, among others, Germany's new infrastructure and defense investments.

The Swedish security situation
Professors: NATO target means economic sacrifices

To reach the NATO target of 3.5 percent of GDP in defense spending, appropriations must be increased by 60–70 billion annually, writes DI. The sum exceeds the scope for reform for the entire state budget.

The newspaper has spoken to professors of economics who believe that Swedes must make economic sacrifices. Lars Calmfors at Stockholm University expects higher spending than consensus and suggests that they should be financed with a combination of tax increases, loans and spending cuts.

– For example, the second stage of the ISK tax cut could be postponed, he says.