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Trump stalls on auto tariffs, Europe shows signs of recovery

The Eurozone may be having a second wind, while May still hopes to get her Brexit deal through Parliament against all the odds and amid widespread calls for her to go.

Centtrip: Trade war impact closer to home

Donald Trump could delay imposing tariffs on foreign vehicle imports for up to six months, according to CNBC reports yesterday, 15 May.

Markets welcomed the news, especially in Germany where Daimler, the owner of Mercedes-Benz, enjoyed a 2.9 per cent boost to its stocks. Other car manufacturers followed suit, with Peugeot and Ford posting gains of 1.5 per cent and 1.1 per cent, respectively.

The news came after Germany and the Eurozone released positive growth data. The figures showed the outlook for Europe’s largest economy was starting to look a little rosier at 0.4 per cent growth in the first quarter of this year. This also suggests that the second half of last year when Germany just avoided recession was only a blip. The positive data helped the bloc achieve first-quarter growth of 0.4 per cent, up from 0.2 per cent in the last quarter of 2018.

Italy, however, continued to cause concerns after Deputy Prime Minister Mario Salvini said he would be prepared to see the country’s deficit rise above EU limits, if it were to boost employment. Last week, it became apparent that the country will once again exceed the EU limit of 3 per cent in 2020.

In the UK, 10 Downing Street announced Theresa May’s plans to hold a further vote on the Brexit withdrawal agreement in the week commencing 3 June. Meanwhile, the Pound suffered during fiery Prime Minister’s Questions in Westminster yesterday, suggesting there was no much support for May’s Brexit deal, which is unlikely to be passed at the fourth attempt.

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