Big Week Incoming
Summary:
Trump’s Tariff Tsunami: New and bigger tariffs against Canada, Mexico, and China threaten to shake up supply chains, ramp up prices, and potentially reignite inflation.
Collateral Damage: Canada and Mexico might retaliate, risking a domino effect for North American trade. The auto industry could be a major casualty… keep your eyes on those US carmakers.
China’s Countermove: Xi Jinping’s government is focusing on domestic demand, AI breakthroughs, and pivoting away from export reliance right as Trump’s tariffs hit. The world’s second-largest economy is in a delicate balancing act of stimulus, property slumps, and trade war escalations.
ECB’s Last Rate-Cut Rodeo?: Over in Europe, policymakers are walking a tightrope. Ongoing US tariff threats might hamper eurozone growth, yet the European Central Bank is nearing the tail end of its rate-cut cycle. Expect plenty of infighting among the ECB’s 26 policymakers on what’s next.
New trade ideas below…
The Trader’s Lowdown:
Let’s cut the polite talk this is getting real. For months, the market has shrugged off Trump’s tariff rhetoric as “just another bluff,” but we’re about to see actual lines in the sand. Here’s how a jaded (but opportunistic) trader might see it:
