LIVE MARKETS-Trump might become less aggressive on tariffs

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TRUMP MIGHT BECOME LESS AGGRESSIVE ON TARIFFS

While uncertainty over U.S. tariffs is still weighing on the global economy and dragging long‑term yield expectations lower, some economists say this may not be the moment for Donald Trump to push the issue.

Atakan Bakiskan, U.S. economist at Berenberg, points out that New York Fed research found U.S. firms and consumers shouldered 94% of the Trump‑era tariff costs in the first eight months of 2025, with the Kiel Institute estimating the burden at 96%.

That happens when exporters pay the duties but raise prices, charging U.S. customers by the same amount.

“Taken together with Trump’s affordability push ahead of the midterm elections to Congress on 3 November it is more likely than not that he will be less aggressive in pursuing additional tariff threats,” Bakiskan says.

However, that doesn’t seem to be happening yet, at least judging by Trump’s latest comments. On Monday, he warned countries not to walk away from recently negotiated deals, saying he would respond with far higher duties under other trade laws.

“It’s evident they (tariffs) are hurting U.S. consumers, who continue to face higher prices on everyday goods,” Bakiskan adds.

(Stefano Rebaudo)

EARLIER ON LIVE MARKETS:

EUROPE BEFORE THE BELL: EDGING HIGHER CLICK HERE

TRUMP FUMES AGAINST THE WORLD AS HIS TARIFFS COME UP SHORT CLICK HERE