Trump’s Big Day includes VAT
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What did President Trump announce about reciprocal tariffs and why is it significant?
Donald Trump has said this is the big one. He has announced reciprocal tariffs, and it's not just the balance of trade he's looking at. He thinks VAT or GST imposed on US imports is a tariff too, so he wants to match that, really. Plus, the market's still responding to the Ukraine peace hope. The UK just managing to avoid a recession and US retail sales later on as well. It's Friday, it's the 14th of February. Happy Valentine's Day. It's the morning call for Good morning. Well the US dollar has been on the slide. Again, this session is down naught point eight percent. It did jump up quite a bit as Donald Trump made his tariff announcement, but then it carried south. Since then, against that a naught point eight percent rise in the Euro, a naught point nine percent rise in the pound.
The Aussie is up naught point seven percent, sixty-three point two US cents, and the yen back up again after yesterday's slide is up one point one percent this morning, and treasury yields were falling back down this session. Down nine basis points for ten year treasuries to four point five three percent, down seven in Canada, down eight in France, uh in Germany, down six, five in the UK and Australia. Well, ten years went down one basis point yesterday to four point four seven percent. Now on futures a few basis points lower than that. And US stocks, well, they are up today at the close at one and a half percent for the Nasdaq, one percent for the S P, naught point eight percent for the Dow, the Russell
two thousand is up one point two percent, and in Europe, well up as well. At least they were at the close. That was before the Trump announcement, of course. The Eurostocks fifty was up one and three quarter percent, the DAX up over two per cent, and the FTSE one hundred in the UK down half a percent. And not much going on with oil today. Brent and WCI both uh flat on the day, uh but gas prices down twelve percent in the last two days. Obviously over hopes about Ukraine. We'll see on that. So it is uh D President Trump's big day, reciprocal tariff day. The President has spoken. Uh let's have a look at uh what was said with Ray Achill.
How are global equity markets reacting to the tariff announcement?
The interesting thing from Nabin Sydney I should say, the interesting thing is uh it's you I mean I think everyone was looking at well, okay, it's gonna be a terms of trade thing. It's gonna be, you know, are you running a deficit or a surplus? But he's also looking at VAT people applying VAT on American goods.
Yeah, morning, Phil. Look, this is breaking news. So, you know, we're we've we've got a not say we're making it up as we go along, but the the headlines in terms of what's coming through here, um, you know, do suggest that as uh I mean to the point about trade deficits, trade surpluses, I still think that's something that probably only gets addressed after that um America First Trade Policy uh report is is is handed down and the likes of James. Greer, the US trade representative, uh, you know, providing advice to the president on how they should to go about trying to counter or impose tariffs uh in relation to the deficits that uh the US is running with other countries. But what we've got now, which has obviously been flagged in the last week or so, is this um announcement regarding reciprocal tariffs, where not only is Trump saying that
We will tax other countries um on an equivalent basis. attacks us. So I think the most obvious example there is um, you know, if the EU charges a ten percent tariff on US autos coming into Europe, but the US charges a two and a half percent tariff on EU cars coming into the US, then we're going to equalize that tariff, or potentially um, you know, the EU may may drop that that tariff rate to two and a half percent. Um and interestingly here it looks like the details are going to be um determined by Howard Lutnick, who's the US Commerce Secretary. Um so it doesn't look like they're imminent. Uh CNBC were reporting earlier today that the tariffs wouldn't uh come into effect until April the first time.
It could not be a negotiator.
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Chapters
6 chapters
1
What did President Trump announce about reciprocal tariffs and why is it significant?
0:01–1:57
2
How are global equity markets reacting to the tariff announcement?
1:57–5:53
3
Why does Trump consider VAT/GST on U.S. imports a tariff and what could it mean for Europe and Australia?
5:53–9:44
4
How might the Ukraine peace hopes influence energy prices and European equities?
9:44–13:44
5
What does the latest U.S. Producer Price Index tell us about core PCE inflation?
13:44–16:37
6
Why are UK growth figures and labor‑cost pressures raising stagflation concerns?
16:37–18:37