Deutsche Bank Building Additional Tariffs Into Forecasts, Says Luzzetti

The transcript discusses the challenges in forecasting the US economy due to trade volatility, particularly focusing on the impact of tariffs between the US and China. It highlights the escalation of tariffs and the potential for further economic pressure before a resolution is reached. The discussion includes the implementation of tariffs on steel, aluminum, and other goods, and anticipates further escalation and retaliation. The need for additional pressure to bring both sides to the negotiation table is emphasized.

What is one of the main challenges in forecasting the US economy in the near term?

• Stable trade flow data

• Decrease in consumer spending

• Volatility in trade flow data

• Increase in domestic production

What was the impact of net exports on the US economy in the second quarter?

• A negative impact on trade balance

• No impact on GDP

• A boost in GDP

• A decrease in GDP

How much worth of goods are currently affected by US tariffs?

• $50 billion

• $34 billion

• $200 billion

• $16 billion

What is the expected escalation of US tariffs on imports from China?

• $34 billion

• $200 billion

• $50 billion

• $100 billion

What is necessary to bring both sides to the negotiation table according to the discussion?

• Additional pressure

• Improved trade balance

• Reduction in tariffs

• Increased domestic production