Trump tariff proposal on EU to reignite trade war fears – Danske Bank

According to Danske Bank analysts, fears of a trade war between the US and Europe could reignite today after Trump's announcement yesterday that the US is proposing tariffs on EU goods worth USD11bn in response to EU subsidies to Airbus.

Key Quotes

“While the amount is less than 0.1% of EU GDP, it would further increase tensions between the EU and US and stoke fears that Trump could move on to add tariffs on cars from the EU.”

“Focus continues on Brexit news today. PM Theresa May visits Chancellor Merkel and President Macron ahead of the EU summit tomorrow, Wednesday. Meanwhile, in London, law makers will have a 90-minute debate on May's proposal to delay Britain's departure date to 30 June from 12 April.”

“On the data front, US small business optimism for March is due. After a big drop from November to January, the index rebounded in February and consensus looks for a small further increase.”

“An EU-China summit will take place in Brussels today. The two sides have struggled to agree on a joint declaration in preparation for the meeting.”

“Otherwise the markets will be waiting for the ECB meeting as well as the EU summit on Brexit tomorrow.”