DAVY VIEW

The latest threatened US tariffs by President Trump of 30% on the EU will generate further headlines over coming weeks. Our view remains that these policies are ultimately unsustainable for the US to keep on a permanent basis, mainly due to their likely upward impact on inflation. However, this does not rule out the scope for policy turbulence in the short term. This week’s focus is on June data for consumer prices in the US, UK and euro area.