G7 summit: a step closer towards a real trade war - ING
Raoul Leering, Head of International Trade Analysis at ING, notes that President Trump continued to blow hot and cold on free trade at the G7 summit, making hostile comments about US trade partners in the run-up to the summit but being constructive in discussions.
Key Quotes
“US President decided to withdraw his signature from the G7 communique that endorsed trade liberalization.”
“The text of G7 communique suggested that Trump's allies had been successful in convincing him that creating more opportunities for exports by negotiating lower trade barriers is the right way to fight a trade deficit instead of impeding imports with higher tariffs.”
“The emotional character of Trump's back-tracking on the common stance that had been reached is surprising and damaging.”
“The American withdrawal from the G7 communique has increased the risk of a real trade war in which the US would respond to the retaliation by the EU, Canada, and Mexico by further tariff increases for imports, with cars seeming the most likely target.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
