Trump backtracks on NAFTA
Thursday 27th April
The Trump administration dominated headlines yesterday as we were given the first indication of what the Presidents eagerly awaited tax reforms may look like. As predicted, there was very little detail given as the administration insisted the reforms are still in the planning phase. The reform will focus largely on drastic cuts to corporate tax as promised in Donald Trump’s campaign. The administration will be keen to keep this key promise however the reforms will likely be very controversial and Trump will likely find it hard to get the support of Democrats. We could see here yet another political road block in the months to come. As we are on the subject of the administration, we have news that Donald Trump may be looking to renegotiate a deal with NAFTA. Trump once claimed that NAFTA was the “single worst trade deal”, and markets may react to yet more political backtracking.