US Commerce Secretary Lutnick says US rates are too high; if Europe retaliates with tariffs, then we will be back to a tit for tat

• Says UK should be aligned with US, not China.
• Expects US growth to exceed 5% this quarter.

The comments from US Commerce Secretary Lutnick signal potential tensions with Europe if tariff retaliation occurs, highlighting a risk of renewed trade disputes. Additionally, his optimistic view on US growth exceeding 5% this quarter could influence market sentiment towards US assets, but the geopolitical backdrop remains a crucial factor in risk assessment.