Europe in a brave new world ...

Tariffs (ceteris paribus) are bad for GDP growth ... but simplistically is this simply about the US asking Europe carrying more of its own economic and geopolitical weight? If the push here is for Europe to adopt a stronger long run growth preference with higher domestic demand and less emphasis on export surpluses then that does mean that we will need to be a bit more inflation tolerant and it requires that regulator allow investors to live with a bit more risk.   It also infers that we should see a steeper curve and that German debt brake may have to come off -You never know - but a pro growth set of policies might - over time - actually might be good for the euro and the European Union.