The American financial system is getting ready for a black summer season | EUROtoday

“Even Trump does not know what he will do then”

Her enterprise is ready for her European suppliers to complete orders value $ 20 million she positioned earlier than the entry into drive of customs duties of 10 %on April 9. This signifies that it must pay a tax of $ 2 million if customs duties stay at this stage. “How am I supposed to pay this?” wonders the proprietor of the field. This may destroy the advantages of a whole yr. »»

The query of whether or not the US financial system will once more be flexed can be conditioned on the way in which by which US customers will react to their president’s want to reorganize the nation’s commerce relations and to cut back their dependence on imported merchandise.

“The outcome of all this will depend on Trump’s decision, and frankly, even Trump ignores what he will do then,” says, all the time with the Wall Street Journalthe founding father of the consulting agency Beacon Economics, based mostly in Los Angeles. “It is therefore almost impossible to know where it will lead,” says Christopher Thornberg.

Three heavy dangers

Three dangers weigh closely on the American financial system. First, the American labor market is in a precarious stability. Companies don’t rent and hesitate to dismiss the staff they’d problem discovering three or 4 years in the past. Unemployment may rapidly improve if corporations determine that demand is just too low to maintain these employees.