The impact of Trump's tariff policy?
After lengthy negotiations, the EU finally reached an agreement with the US administration in the tariffs dispute. Two weeks have now passed in which the majority of exports from EU member states to the US have been subject to a 15-percent tariff. Europe's press takes a look at the consequences.
US citizens feeling the pinch first
For Corriere del Ticino, US consumers will be the biggest losers:
“The tariff war doesn't seem to have shaken the stock markets. The main US indices are close to historic highs; European indices are rising and have not been affected by the agreement on a 15 percent tax on exports to the United States. The Swiss stock market also appears to be in excellent shape. ... Trump's goals are well known: to reduce the US trade deficit and bring back production that has been outsourced. In the short term, however, the tariffs are undermining US consumer confidence and pushing up prices.”
Expect interest rate cuts and dollar depreciation
Economist Matas Laukevičius comments in IQ:
“While up to now companies have borne most of the burden, as autumn progresses the additional costs are likely to be passed on to US consumers. This will no doubt fuel inflationary trends at a time when the US Federal Reserve is facing growing pressure to lower its key interest rate. The result would be a further appreciation of the euro against the dollar ... Bank analysts interpret the euro's recent surge mainly as the result of investors seeking alternatives to the dollar, which has been significantly weakened by Trump's zigzag trade policy.”