EU-US Deal: “Tariffs continue to be defanged as an issue”

Markets heave a sigh of relief at EU-US deal – Chris Beauchamp, Chief Market Analyst at global trading and investing platform IG.

“For the second time in a week President Trump has been able to proclaim a trade deal with one of the US’ key partners. Like the Japan deal, it seems to involve the US slapping on tariffs while the other side pledges to open up its markets. But for stock markets the key element is that a deal has been done, and at a lower tariff level than feared.”

“Tariffs continue to be defanged as an issue, and the announcement of yet another 90 day pause for China merely underlines the view that Washington is now closing down the issue having gained a series of ‘wins’. Now we wait to see whether the tariff price increases do start to show up in inflation data.”