Donald Trump's Trade War: JPMorgan Predicts Deals, Higher Taxes and Potential Recession Avoidance - JPMorgan Chase (NYSE:JPM)

How to benefit from trade war?

The recent US tariff policies have created major problems for most export-led economies and have escalated the US-Sino trade war to new heights. In 2018, when the US imposed the first round of tariffs, it negotiated hard to balance its trade deficit with China by getting guarantees of increased soybean imports from Beijing. It worked for a while but afterwards the deficit has been widening over time. Moreover, since 2018, Chinese investors start…

Donald Trump's Trade War: JPMorgan Predicts Deals, Higher Taxes and Potential Recession Avoidance - JPMorgan Chase (NYSE:JPM)

JPMorgan (NYSE: JPM) has predicted that the ongoing tariff war initiated by President Donald Trump could lead to some agreements between the US and its trade partners, along with a significant rise in tax rates.

JPMorgan details exactly how it thinks Trump's trade war will play out — and what investors should do

Chip Somodevilla/Getty ImagesJPMorgan published new research laying out its base case for where Trump ends up with tariffs.Under this scenario, the effective tariff rate would land in the 10%-to-20% range.The firm lays out adjustments investors can make in response to the new tariff-heavy environment.JPMorgan expects President Donald Trump's tariff blitz to yield "some deals" between the US and its trade partners, but says tax rates will still m…