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Please complete the phrase "Tariffs are the greatest…"

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Yesterday US President Trump tweeted "Tariffs are the greatest". The president may have been muddled, forgetting to finish the sentence. If implemented, tariffs are the greatest tax increase US consumers face this year. Tariffs are the greatest risk to US employment growth. Tariffs are the greatest threat to US and global economic growth.
  • Taxing US consumers is on the agenda today with one of the many EU presidents (Juncker) talking trade with US President Trump. President Juncker has no authority to offer anything new. It seems unlikely that US President Trump will be deterred from the plan to increase taxes on US consumers of autos – although there is no business support for this.
  • In the interminably tedious process of the EU being separated from the UK, UK Prime Minister May has taken personal charge of the negotiations. The previous minister for getting out of Europe had barely met the EU's negotiator this year; the change is not necessarily significant.
  • The data calendar is quiet. The German ifo survey of sentiment is due – this does have a better relationship with reality than other sentiment surveys, but it is still only a sentiment survey. French producer prices are also due.