June 03 2025 - CFA Society Toronto corporate sponsor RBC Global Asset Management sees that tariff news has been trending positively, but tensions remain. After this video was recorded, a court ruling blocking a significant fraction of U.S. tariffs was announced. This complicates the tariff outlook, but likely doesn’t change the medium-term trajectory as the ruling may yet be overruled and the White House has other means to implement tariffs. In this week's #MacroMemo video, we explore:
1. Tariff developments and trade agreements: We’ll explore new emerging tariff threats, including a proposed 50% tariff on the European Union. We’ll also update you on UK trade deals with India and the EU.
2. Economic and inflationary impacts of tariffs: We’ll dive into U.S. economic data and look at why the effects have been limited so far.
3. U.S. fiscal challenges: We’ll unpack what’s driving the growing U.S. deficit, projected to increase by $3-$5 trillion over the next decade.
4. U.S. debt rating downgrade: Moody's has downgraded the U.S. debt rating to AA+, reflecting fiscal concerns and aligning with similar downgrades by other agencies years ago. We’ll see how this underscores the challenging U.S. fiscal position and limited flexibility to address fiscal issues.
Catch up on all the essential economic news in this week’s #MacroMemo video.