ECB's Knot says there’s a severe likelihood of a commerce struggle taking place

• If US imposes tariffs, China might look to ship low cost items to the EU
• That will see China exporting deflation to Europe
• Wage calls for of seven% usually are not aligned with return to 2% inflation goal

It is all conjecture at this level however the harm to the financial outlook is already evident out there pricing. The query now’s to what extent does Trump go in pursuing the struggle on tariffs and the way will the EU and/or China reply to that.

This text was written by Justin Low at www.ubaidahsan.com.



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