The markets are increasingly optimistic about the perspective of a permanent reduction of American tariffs after the end of the 90 -day moratorium, says Thu Lan Nguyen, head of currency research and raw materials of Commerzbank.
The US policy is a significant load for the USD
“A reason for this is probably the recent turn of the Canadian government, which allows negotiations to continue. What happened: US President Trump had announced the end of conversations with the Commercial Delegation of Canada because the government of Prime Minister Carney had insisted on a digital tax that would have mainly affected US technical companies. This tax, which would have entered into force today.
“Now, one might think that Trump’s strategy has been obviously successful. Of course, if it is assumed that the tariffs to Canada, one of the most important commercial partners of the US would have really increased significant Americans. “
“Therefore, the Canadian government would be in a position to cause considerable damage to the US economy – one eye for an eye, so to speak. So if Trump’s strategy is to shoot in the foot if necessary, I would be cautious when praising it. After all, the risk of a ‘political accident’ raises considerable dangers for the US economy. This is a key reason why we consider that the US policy significant load for the dollar. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
