|Data for week commencing 27 May 2019|
The headline that follows isn’t a good one but CNBC sees it as an accurate portrayal of what Donald Trump is up to: “European markets close lower after Trump stokes recession fears; Stoxx 600 hits 3-month low.” And this is not just another chapter in the US President’s fight with China. No, now he’s promising to slug Mexico with a tariff. And because there’s a lot of trade and production between these two neighbouring economies, Wall Street can’t ignore the potential negative effects.
The latest edict/tweet from the Oval Office is that from June 10 Mexico faces a 5% tariff on, wait for it, everything. This is only 10 days away! This tweet explains his thinking: “In order not to pay tariffs, if they start rising, companies will leave Mexico, which has taken 30% of our auto Industry, and come back home to the USA. Mexico must take back their country from the drug lords and cartels. The tariff is about stopping drugs as well as illegals!”