At the end of one of Lenin’s “weeks when decades happen”, senior economists from Capital Economics briefed clients on the implications of the news that China is retaliating aggressively to Donald Trump's reciprocal tariffs plan, including whether Europe could follow suit and how much more pain is in store for markets.
In this edited extract from that briefing, Neil Shearing, Mark Williams, Andrew Kenningham and Jonas Goltermann tackle everything from what China has just done to why the dollar has been acting strangely to what could push Brussels to fight back hard against the White House's reciprocal tariffs.
Events and analysis referenced in this podcast:
Watch: Trump’s reciprocal tariffs – China retaliates and the market’s response
https://www.capitaleconomics.com/events/drop-trumps-reciprocal-tariffs-china-retaliates-and-markets-response
Read: China hits back, hard
https://www.capitaleconomics.com/publications/china-economics-update/china-hits-back-hard
Read: Answering your questions about Liberation Day tariffs
https://www.capitaleconomics.com/publications/global-economics-update/answering-your-questions-about-liberation-day-tariffs
What is The Weekly Briefing from Capital Economics?
Capital Economics, a world leading provider of macroeconomic insight, presents The Weekly Briefing – the show with all you need to know about what's happening in the global economy and markets. From the Fed's next decision to China's slowdown to moves in equities, bonds and FX, each week, our team of economists take apart the big economic and market stories and highlight the issues that investors should be paying more attention to.