>Prices are down
>Inflation is down
Winning is back on the menu, thanks Trump!

https://www.msn.com/en-us/money/markets/countries-benefit-from-trump-s-tariffs-and-it-s-not-the-u-s/ar-AA1Gjg80

When President Donald Trump announced a new round of sweeping tariffs on April 2, many anticipated a global spike in inflation. However, nearly a month later, the markets are showing the opposite effect, and some countries, especially in Europe, could end up reaping more benefits than the United States.

The tariffs imposed by the U.S., far from protecting the national economy or boosting domestic prices, are generating a global surplus of goods, particularly from China. With decreased demand from the U.S. market, these products are seeking new destinations, and Europe is emerging as a key recipient.

The result: downward pressure on prices that benefits European consumers while leaving the U.S. facing more complex macroeconomic risks.

And the European Central Bank (ECB) responded swiftly. In early May, its Governing Council cut the deposit rate by 25 basis points to 2.25%. A more aggressive 50-point cut was even discussed, according to ECB President Christine Lagarde.

This shift signals a new focus. The ECB is no longer trying to fight inflation, but to stave off an economic slowdown. Lagarde made it clear: “Tariffs are probably more disinflationary than inflationary”. With that in mind, the ECB is already expected to revise its growth outlook downward in its next meeting in June.

A Win for Europe, Pressure for the U.S.

This redirection of goods is a double-edged sword for the U.S. While European consumers enjoy lower prices and more available goods, the American economy risks slowing without achieving the goal of protecting its domestic industries.

And while the ECB is reacting to its own economic environment, it’s also aware of the global risks triggered by U.S. tariffs. As Goldman Sachs economist Alexandre Stott explained, in previous cycles, most European economies entered a recession within three quarters of a U.S. contraction. "We already forecast mild contractions for Germany, Italy, and Switzerland in Q3 2025", he noted.

Market bets on further rate cuts are rising. Bank of America now expects the ECB to lower its deposit rate to 1.25% by December, citing “weaker growth, even lower inflation, and continued policy rate declines”.

While it’s still too early to fully measure the effects of Trump’s trade policy, the market’s early response suggests that the tariffs are having a disinflationary impact, particularly in Europe. For American citizens, this presents a paradox: a policy meant to strengthen the domestic economy may end up weakening it, while other countries, especially in Europe, benefit from cheaper prices, increased supply, and more room for monetary easing.

>>1411327 (OP)
I would trust Christine Lagarde as much as I would trust Trump, which is to say not at all.

>>1411327 (OP)
If OP played a game of chess with tRump, tRump woodwind as the OP would be the first one to try to eat the chess pieces

>>1411327 (OP)
Don't pay attention to this! Pay attention to some guy throwing rocks in Los Angeles!

>>1411327 (OP)
Brilliant sarcasm

You'd think shills would be thrilled to hear Trumps retarded tariffs are working