President Trump is expected to sign an agreement to introduce Aluminium and Steel tariffs, which is thought to be the start of a trade war with Europe and China.
The European Union has warned Trump that any changes to tariffs will result in US exports being charged increased tax also.
Yesterday the US Dollar only really strengthened with the markets already factoring in the changes that will come over night. Many analysts are already arguing that the Eurozone will be the main loser with tariffs on Aluminium and Steel.
Last night Donald Trump did however throw China and Europe a bone by suggesting that “real friends” will be treated with flexibility and nations that cooperate won’t suffer. However in the immediate fallout there will be many governments around the world trying to work out what the consequences of the tariffs will be and how they may be able to recoup any losses. Many will be wondering how all these changes have come around so fast.
Big day of data expected today
Non-farm Payrolls will be released today and are expected to show 200k new jobs were created in February. Furthermore there is expected to be a drop in the Unemployment level from 4.1% to 4.0% which could well be close to a record breaking level. There is however expected to be a slight drop in average earnings with a fall of 0.1% expected from January to February.
The US economy has been booming somewhat of late and this trend looks as though it could be set to continue. There is talk of at least three interest hikes if not four expected to come this year and over the next few months it will become clear how much chance there is of those hikes taking place.