The WTO, Airbus and Global Uncertainty
Wall Street didn’t like the news it got this week - A WTO ruling that paves the way for President Trump to slap tariffs on $7.5B of EU goods. Amidst the hype, it’s important to note that the ruling will affect less than 2% of the value of total EU exports to the United States, and the UK has gone on record saying that a settlement is in the best interest of all parties. More importantly (for the markets at least) is the fact that on Tuesday, the WTO slashed its forecast for world trade growth in 2019 to 1.2% from 2.6%. Another WTO ruling on how the EU can retaliate isn’t scheduled until early next year, so in the meantime, global uncertainty is surging to a record high and killing growth.