Courtesy of Mish.
UK prime minister Theresa May hopes the EU will come to its senses and negotiate a fair Brexit settlement.
Unfortunately, current rhetoric suggests a “hard brexit” is the most likely scenario.
If so, who are the winners and losers?
In aggregate, no one wins trade wars. In isolation, there are winners and losers.
The average UK citizen is a loser thanks to higher inflation and the falling British pound. Retailers dependent on goods from the EU will get hit hard.
Common wisdom says UK exporters will get crushed because of EU tariffs, but that alleged wisdom is likely wrong.
For certain, EU exporters to the UK will get hit the hardest as noted by Germany’s Trade Position with the UK.
Germany’s Trade Balance with UK
