UBS On-Air: Market Moves
UBS On-Air: Paul Donovan Daily Audio 'Taxes, spending, and rate cuts'
06 Mar 2025
US President Trump sounded a partial retreat from the latest trade taxes, granting US car companies a one-month exemption for car parts traded under the revised NAFTA. This rather highlights the fact that US consumers and companies, not foreigners, pay trade taxes. One month does not allow for much response—some stockpiling, presumably a lot of lobbying. Market reactions seem to signal a belief that trade tax retreats are possible, but the limited response suggests concern about the lack of policy coherence.
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