The market’s relaxation signals may be interpreted too euphorically by the market, warns an expert from the US Großbank Goldman Sachs.
• Goldman chef economist warns of too great market euphoria
• The latest de -escalation signals overinterpreted?
• Trump continues to threaten high tariffs
This trade week has so far been dedicated to hope: after a trade deal with Great Britain on Thursday, the markets are now relying on a meeting between the USA and China on the weekend, during which the Sino-American Commercial War could possibly be defused.
Expert warns of hope for the end of the quarrels
Alec Phillips, chief economist from Goldman Sachs, considers – despite all the signs of de -escalation – the opposite. The markets would overlook the fact that US President Donald Trump has warned twice this week that the United States could burden some of its most important trading partners with tariffs, quotes “Marketwatch” to the experts.
“It will come a time when we make the deal easy,” said Trump after the trade agreement was announced with the United Kingdom. “We do not need the country’s participation because we already had it. And we say that this specific country will pay a dial of 25 percent, 30 percent, 50 percent, 10 percent or whatever”.
New tariffs ahead?
According to the Goldman Sachs expert, this should mean that some – if not most – trading partners will soon be confronted again with the introduction of country -specific counter tariffs and that the higher sentences could be imposed “at least a few trading partners”.
Editor finance.net
Image sources: Jabin Botsford/The Washington Post via Getty Image, Win McNamee/Getty Images