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With the US tariffs being applied to Europe, Canada, and Mexico, trade issues are front and center and the issue will likely dominate the G7 meeting, according to analysts at BBH.
Key Quotes
“Ironically, when tariffs have been justified on national security grounds, and yet it appears US allies will bear a considerably greater burden than China. US Commerce Secretary Ross will be in Beijing for more talks this weekend. Renewing the threat of tariffs on $50 bln more of Chinese goods on the eve of the meeting would seem to poison it before it began after the clear indication that a negotiated settlement was sought. Separately, CNBC and Germany's WirtschaftsWoche reports that Trump wants to impose a total ban on German luxury cars. Reportedly Trump told Macron this last month. Note that German automakers, including Mercedes (Alabama) and BMW (S.Carolina), produce cars in the US.”
