US: Focus on global trade and protectionism – Danske Bank

Mikael Olai Milhøj, Senior Analyst at Danske Bank, suggests there is a still a lot of focus on global trade and protectionism.

Key Quotes

“Yesterday evening, a White House official said Trump plans to sign orders for the steel and aluminium tariffs today at 21:30 CET but NAFTA countries (and possibly other allies) will initially be exempt and Republican lawmakers issued a statement yesterday expressing concerns that broad tariffs could cost job and lift inflation, hurting the Republicans chances to win the mid-term elections in November. Instead, they think Trump should target China.”

“With respect to China, we think the administration is waiting for the official ongoing investigation into Chinese stealing of US intellectual property before we see some action. China’s foreign minister Wang Yi said yesterday that China would make a “justified and necessary response” to measures hitting the country. As long as Trump’s measures are symbolic, we believe China will be cautious in its response, as the US is its most important export market.”