The recent sting of tariffs has received some reprieve by the US delaying implementation on the auto industries of Canada and Mexico by 30 days. It is a cynical move and only undertaken as the largest casualty might just be the US car giants that ship materials and parts several times across each border before a unit is finished.
If last night’s speeches by the potentates of the two biggest economies are used as reference points, then the world appears to be one big happy place. Despite the increasing hostilities between China and the US, Chinese Premier Li Qiang, whilst warning of challenges lying ahead, assured the audience that his country will grow at the rate of 5% with a budget deficit planned to be around 4%.
T-day is upon us and the 25% tariffs on Mexico and Canada with an additional 10% on China have just gone live. Retaliation is set to be swift as Canada looks at imposing restrictions of C$30 billion on US products which will be extended after three weeks, Mexico will announce its own package later as China lines up the agricultural trade with the US for a 10-15% counter-tariff.
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