May 2019 Economic Recap
The month began with the U.S. increasing tariffs on $200 billion worth of Chinese goods from 10% to 25%. Within a few days, China announced retaliatory tariffs of up to 25% on $60 billion worth of U.S. goods that would set in on June 1st. Trade negotiations were further complicated when the U.S. administration implemented an executive order that would allow the U.S. to ban telecommunications gear from foreign adversaries. It was confirmed that the U.S. was targeting Huawei when the Department of Commerce added the company to its list of companies considered to be involved in activities not in the interest of the U.S.
Tensions between the U.S. and Iran also increased, with the U.S. announcing the end to waivers to countries still exporting oil from them. Iran reacted by threatening to backtrack on the Nuclear Deal the U.S. pulled out of last year, suggesting it would act to build its enriched uranium reserves, the key ingredient in production of military nuclear weapons.
Relations with Mexico were rocky as well, as the U.S. closed out the month threatening to implement tariffs on imports of 5% and up to 25% by October if Mexico did not act to stop the flow of Central American migrants.
In other news, Prime Minister Theresa May agreed to step down on June 7th, allowing elections to begin the following week and making a disorderly Brexit a much greater possibility. Boris Johnson, a Brexit “cheerleader”, is the favorite in the race.
For a deeper consideration of the economic data released during May, please follow the links below: