|
By Mohammed KAZMI, Chief Strategist Senior Portfolio Manager, Union Bancaire Privée (UBP)
With the trade deficit under scrutiny during the latest Trump administration, parallels can be drawn with the Plaza Accord of 1985; however, stark differences emerge about how the deficit is being addressed. In 1985, the G5 nations coordinated efforts to weaken the US dollar, aiming to reduce the trade imbalance through international collaboration. Forty years later, while the trade deficit has once again taken centre stage, the approach has shifted from cooperation to confrontation. The Trump administration’s imposition of broad global tariffs – the so-called ‘Liberation Day’ – could be seen as a ‘Solo Plaza’ moment, reflecting unilateral action rather than...
|