A couple of snippets from analysts on Friday, that have proved prescient, comments indicating Trump’s tariff threats being viewed as hollow.
Vanguard:
- investors expect the steep 50% tariff proposal on imports from the E.U. to be negotiated down, similarly to what happened with China
- market has slowed down now because it’s happened before, and we know what happened before
- “It’s kind of like the boy who cried wolf”
- administration is not crazy, they have a plan and there is a limit,” to how far they will go
Barclays:
- threats on the EU are ‘primarily a negotiating tactic’
- “the US has not turned the page on tariffs and that more trade policy volatility lies ahead”
This article was written by Eamonn Sheridan at www.forexlive.com.
