CRU: Will US tariff policy be transactional or transformational?

Markets are struggling to guess the direction of US tariff policy amid repeated U-turns. This week the US imposed steep tariffs on its three largest trading partners after previously delaying them. However, concessions have already been made, with a further one-month delay on having to pay tariffs on most trade with Mexico and Canada.

If they are maintained, the global economic cost of these tariffs – and potential future ones against the EU and other trading partners – will be considerable, especially for the manufacturing sector. However, there still remains great uncertainty about the path of tariff policy from here.