Business, Commodities, Currencies, Stock markets Business | The Guardian
Dollar falls further, sparking talk that it could lose its safe-haven status, as US president doubles down on new tariffsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.The dollar has fallen further, hitting the lowest level since November, after Donald Trump said his new tariffs will cause “a little disturbance” in a combative speech to Congress, as he vowed to push ahead with his hugely divisive domestic agenda.
In the first major policy speech since he took office in late January, the president doubled down on his decision to impose 25% tariffs on Canada and Mexico, the US’s two biggest trading partners, and an additional 10% levy on China. Trump said:Tariffs are about making America rich again, and making America great again.It’s happening, and it will happen rather quickly.We have published today on a concern around the loss of the dollar’s safe-haven status. Our views on this are evolving and will depend on the US policy path in coming months, in particular on the extent to which it continues to pursue disruptive domestic economic outcomes.A €500bn special purpose vehicle for infrastructure investment, of which €100bn will be allocated to the federal states, called Länder.A reform of the debt brake to exempt any defence spending over and above 1% of GDP, effectively permitting open-ended borrowing for defence.A reform of the debt brake at the Länder level to raise their net borrowing cap from 0% to 0.35% of GDP, as at the federal level. Continue reading…
Dollar falls further, sparking talk that it could lose its safe-haven status, as US president doubles down on new tariffs
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The dollar has fallen further, hitting the lowest level since November, after Donald Trump said his new tariffs will cause “a little disturbance” in a combative speech to Congress, as he vowed to push ahead with his hugely divisive domestic agenda.
In the first major policy speech since he took office in late January, the president doubled down on his decision to impose 25% tariffs on Canada and Mexico, the US’s two biggest trading partners, and an additional 10% levy on China. Trump said:
Tariffs are about making America rich again, and making America great again.
It’s happening, and it will happen rather quickly.
We have published today on a concern around the loss of the dollar’s safe-haven status. Our views on this are evolving and will depend on the US policy path in coming months, in particular on the extent to which it continues to pursue disruptive domestic economic outcomes.
A €500bn special purpose vehicle for infrastructure investment, of which €100bn will be allocated to the federal states, called Länder.
A reform of the debt brake to exempt any defence spending over and above 1% of GDP, effectively permitting open-ended borrowing for defence.
A reform of the debt brake at the Länder level to raise their net borrowing cap from 0% to 0.35% of GDP, as at the federal level.
