This is the first time I have ever had to post twice in one day on the same topic, but here goes... President Trump has just raised tariffs on China to 125%. However, he has also announced a 90-day pause on the 'reciprocal tariffs' for those countries that have not yet retaliated. On balance this … Continue reading Trump wins! / backs down! (pick your own headline)
Category: Taxation
What to make of the latest market turmoil
A week on from ‘Liberation Day’, Trump’s tariffs have not landed well in the financial markets, especially with a tit-for-tat trade war now breaking out between the US and China. That much is obvious. But there is still a lot to unpick. The simplest place to start is the stock markets. The US S&P 500 … Continue reading What to make of the latest market turmoil
Thirteen questions and twelve answers on Trump’s tariff war
By popular demand, here is a bitesize Q&A on tariffs. In short, there are no winners from a trade war, but it is not too late to avoid a global recession. For now, ‘wait and see’ may be the best strategy both for central bankers and investors. 1. Do the new ‘reciprocal tariffs’ make any … Continue reading Thirteen questions and twelve answers on Trump’s tariff war
Is defence spending good for growth?
The right amount to spend on defence should, of course, primarily be a decision based on the benefits to our security. But could more defence spending also be good for growth? The short answer is ‘not necessarily’. The overall impact on the economy will depend on how the additional spending is financed, and on whether … Continue reading Is defence spending good for growth?
Plain-speaking Economics 