EU not yet offering a fair deal.Bessent stayed at G7.Chance of Japan deal, but they’re “tough”.Reiterates threat to send letters with what tariffs he’ll charge.Pharma tariffs coming very soon.Might do separate Canada deal for Golden Dome.Canada will pay to join Golden Dome project.Will probably extend TikTok deadline again.Not too much in mood to negotiate with Iran.
The comments are mostly centred on tariffs. I don’t think tariffs matter that much anymore as the July deadline will be extended if needed and the markets have already priced in a 10% average tariff rate. Plus, businesses continue to plan with 10-20% tariff rate in mind.
Markets know that eventually we will get to deals and they will likely be around 10%. The positive expectations for global growth are now relying on Trump’s “big, beautiful bill” and rate cuts. Negative outcomes on those fronts could lead to a repricing in expectations and weigh on risk sentiment.
This article was written by Giuseppe Dellamotta at www.forexlive.com.