It is hard to over-estimate the scale of change taking place in global economic and geopolitical relations in a matter of days, warns George Saravelos, Deutsche Bank's Global Head of FX Research.
Over the past twelve hours, President Trump has announced the suspension of military aid to Ukraine as well as 25% tariffs on Canada and Mexico, unravelling a trade agreement he signed just a few years ago. At the stroke of a pen, two pillars of America's role in the world are being fundamentally challenged: the US's security backstop for Europe and the respect of rules-based free trade.
Approximately half of total US imports are now subject to tariffs of more than 20% and the average US tariff rate is now above 10%, the highest since 1970.
