The risk mood is continuing to improve at the moment despite some fresh Trump threats.

• Will respond to EU counter-tariffs
• Flexibility on tariffs but will be very little flexibility once we start
• There is still a ‘massive deficit’ we are going to even that out
• April 2 will be a very big day
• We can pressure Russia but hope it’s not going to be necessary
• There are things you could do in a financial sense that would be very bad for Russia
• Canada is absolutely one of the worst on tariffs, cites dairy
• EU doesn’t take US farm products or cars
• Will absolutely put tariffs on cars

Farm products are a funny battle to fight because no one is backing down on that. The US is the world champion of farm subsidies and giveaways including a fresh $30 billion handed out just last week.

This article was written by Adam Button at www.forexlive.com.