Trump tariffs to intensify

Deutsche with an excellent wrap.

1. Free trade agreements (FTAs) are not safe. Canada and Mexico are part of the USMCA which was negotiated by Trump himself. It is clear that even countries with existing agreements with the US can be subject to tariffs. See here for our analysis on who is most vulnerable.

2. Right after the Treasury Secretary announcement. Tariffs are being announced just a few hours after the nomination of Scott Bessent as Treasury Secretary. This is pushback to the argument that tariffs are taking a backseat to the Trump agenda. On a related note, we are still awaiting to see if Robert Lighthizer will have a role in the US administration.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.