Donald Trump ended weeks of speculation on Saturday with the formal announcement of 25% tariffs on Canada and Mexico, and 10% on China. As those countries respond Group Chief Economist Neil Shearing joins David Wilder on this special episode of The Weekly Briefing from Capital Economics to talk about whether this marks the beginning of a global trade war.
Neil addresses the immediate economic threats to Canada and Mexico, but also explains why these tariffs end the chance of any more rate cuts from the Fed. He also discusses what further action Trump could take against US trade partners – not least China – and the risks of an intensifying process of global economic fracturing.