The fine details of the agreement reached between the EU and the USA on Sunday are still unclear, but the main features provide a clue – the tariffs will be 15 percent.
Now we know the conditions. There were threats of significantly higher levels and I think many knew that the tariffs would land roughly where they did. Now I think the market can look ahead, says Frida Bratt.
She means that the message means that companies now have something to relate to.
One will be able to work with these conditions and it will be a small relief after all. But this is something that companies will be able to handle, I think that's how you have to see it.
But it's paradoxical that the stock market rises even though tariffs are introduced. But it's because companies can look ahead.
But how the tariffs affect the economy in general is an unwritten chapter. More expensive goods make the cost higher for the consumer who buys fewer things and economic activity decreases.
The great fear here is that it risks fueling inflation and having negative consequences for the economy. That's why there will be a discussion about how the Federal Reserve should act in such a situation.
It's not obvious that it will be as Trump wants, that this benefits the American economy and companies. Because this primarily affects American consumers and they are already quite weak and do not look so bright on their economy right now.
