Comment: One aspect of Donald Trump’s campaign to make America great again is boosting domestic manufacturing, thereby reducing the country’s reliance on imports. We’ve seen a slew of hefty tariffs levied by the US in a bid to encourage this - and more could follow. Trade partners have been quick to retaliate with tit-for-tat measures, but it’s clear that protectionism isn't being welcomed by markets. Equities are taking a beating as investors seek out the safe haven of dollar denominated debt. This means US Treasury yields are falling sharply whilst demand for the dollar is rising. As a result - and not without irony - a byproduct of this trade war is that the value of the US dollar is on the up. The DXY dollar index is approaching 12 month highs and imports for US consumers are being made just that little bit cheaper.
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