“Rising Tariffs, Lower Growth, Higher Defense SPEENDING, DEVPER POLITICAL FRAGMENTATION AND Rising Dollar-Denominated Borrowing Costs Are Set to Weaken Borrowing. reforms.”, – WRITE: www.fxempire.com
Four Principal Risks Four Principal Risks Stand Out (Figure 1). First, Higher Tariffs Targeting Sectors and/or Countries – Such As China, Mexico, Vietnam, Germany, Japan and Italy – With Wich The Us Has A Large Trade Deficit – Could. Manufacturing Supple Chains.
Second, Europe Governments May Be Forced to Increase Military Spending to Reduce Reliance on Us Military and Security Commitments Amid the Persenti Threat from Russia. Third, on the domestic Political Front, US Support for Europe’s Far-Right Political Parties May Accelerate Instability WitHin Europe, Complicating Concensus-Driven.
Finally, An Apprecating Dollar Driven by Tighter Federal Reserve Reserve Policies and Global Risk Aversion Could Exacherbate Borrowing Costs Mostly for Emerging Markets Sukh ASHCHA, EGYA Central and Eastern Europe (CEE) Sovereigns Such as Hungary.
Figure 1. US Policy Shifts and Potential Policy Options to Mitigate Impact