Car Wars: The EU (Probably) Strikes Back
By Stefan Koopman, Senior Macro Strategist at Rabobank
The Trump administration’s decision to slap a 25% tariff on imported cars and parts is yet another move in America’s ongoing trade battles. Following the global steel and aluminum tariffs, this latest escalation puts pressure on the EU to respond. As we noted in a
US gold imports pic.twitter.com/5RpaN5DaQX — zerohedge (@zerohedge)
Obviously, this front-running of tariffs caused quite a scare earlier in March when the Atlanta Fed’s GDPNow model plummeted to -2.8% annualized for 25Q1. This prompted the modelers to introduce a “gold-adjusted” version. After all, given that substantial portions of these industrial metals are likely being invested in inventories, the direct impact on GDP should be relatively neutral. However, even with gold excluded, net exports remain a considerable drag on GDP. The gold-adjusted estimate currently stands at +0.2% q/q annualized, which is not pretty.
Across the border, Banxico cut the policy rate 50bp to 9.00%, in line with our expectations. Notably, in its statement, Banxico said that “looking ahead it could continue calibrating the monetary policy stance and consider adjusting it in similar magnitudes.” As such, we Tyler Durden Sat, 03/29/2025 – 08:10
Source: https://freedombunker.com/2025/03/29/car-wars-the-eu-probably-strikes-back/
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