- No outcome yet in US talks on tariffs, we don’t want to retaliate.
- We don’t want trade war.
The EU officials said previously that they didn’t expect a tariff letter but it seems like they will get one as well as Trump said overnight that “EU and Canada would receive letters notifying them of new tariff rates today or tomorrow”.
I don’t expect the EU to retaliate as they will just continue to negotiate and try getting some concessions. The base case remains a 10% tariff rate though.
This article was written by Giuseppe Dellamotta at www.forexlive.com.