“The global economic landscape has become increasingly uncertain, with trade tensions and geopolitical pressures continuing to weigh on investor sentiment. As countries scramble to make their own trade deals with the US, including Switzerland after a proposed 39% tariff, Group CIO Yves Bonzon breaks down the EU-US trade deal and explores its broader significance, including the potential risks and opportunities that arise from the current trade environment. The current US administration is seeking to rebalance global trade and reduce its deficits. The recent agreement with the EU is part of this effort, with the aim to increase exports and reduce the trade gap. This rebalancing also has implications for other trading partners, including China. US importers, and ultimately, US consumers are absorbing most of the cost of the tariffs. This is leading to stagflationary effects, characterised by slower growth and higher prices.”
Morten W. Langer
