US Tariffs and FX Effects – What You Need to Know: FX Moment
US tariffs may be dominant FX drivers again in early 2Q, with the announcement on April 2 of US trade levies and possible retaliation from abroad. The tariffs may intensify risk aversion, which bodes well with Bloomberg Intelligence's bullish view for defensive FX, such as the yen. In this episode of FX Moment, BI's Chief G10 FX Strategist Audrey Childe-Freeman talks to Bloomberg Economics Chief Trade and Climate Economist, Maeva Cousin, about what tariffs are already in place, what may follow, along with the likely implications on growth and inflation for the US economy and its key trading partners. Maeva shares her latest model findings and how the US' long list of grievances with the international trade system may lead to hefty tariffs and a sizable stagflation risk for the US.
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