Inflation risks in the US keep lingering
In Short
The announcement of a sharp increase in US import tariffs to its closest trade partners (Mexico and Canada) and to China exacerbated fears of a US slowdown already raised by deteriorating indicators (slumping consumer confidence ISM manufacturing expectations), that brought down long-term interest rates. However, if the measures on Mexico, Canada and possibly Europe, are imposer before activity is impacted in full, the level of prices would rise, leading to a spike in inflation.
