tisdag 27 maj 2025

Tariff crisis Trump's tariff policy

Trump: Positive sign that the EU has asked for meeting times

Donald Trump is very pleased with the effect he believes that Friday's 50 percent tariff threat against the EU had. On Truth Social, he writes that the measure is motivated by the EU dragging its feet in the negotiations.

"I have just learned that the EU has called to quickly set dates for meetings. It is a positive sign," he writes further.

He expresses hope that the EU, just as he previously demanded of China, will open up its trade with the US. This would make both parties "very happy and successful."

Evaluators: No new price shock – but thinner margins

When Donald Trump imposed a basic tariff of 10 percent on goods imported into the US, the evaluators believed that companies would pass on the costs to customers through price increases. But this has not happened to a large extent and instead companies are swallowing the tariffs with thinner gross margins as a result, writes Barron's.

Because of this, US inflation has also remained relatively low, and the price shock that some experts predicted has so far not occurred.

The major bank Goldman Sachs also writes that it predicts that inflation increases have largely failed. But not because companies are not raising prices, but because the economy is turning down. The bank writes this in an update that Market Watch has seen.

Goldman's economists predict that inflation will rise slightly, but not nearly as much as in 2021 and 2022.

Economist skeptical of "Taco": "Not fond of the concept"

Donald Trump's tariff policy has caused the acronym "Taco", or "Trump always chickens out", to begin to spread in the market. The background is that the president has repeatedly paused or postponed his punitive tariffs before they have had time to take effect.

Maria Persson, associate professor of economics at Lund University, is skeptical and tells SVT Nyheter that it is simply not true that Trump “always backs down”.

– I am not so fond of the term because it suggests that as soon as Trump meets resistance, everything he has proposed disappears. And that is absolutely not the case, she says.

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