Dow Crushed After New Trump Tariffs Threaten US Credibility Worldwide
By: Francois Aure @bullishtulips December 2, 2019
Photo: REUTERS/Kevin Lamarque
- Dow Jones falls as US-China tensions escalate.
- Donald Trump has announced fresh tariffs on Brazilian and Argentinian steel imports despite an existing agreement to the contrary
The Dow endured a 200 point hammering to start the week. Diplomatic relations between the US and China soured , and ISM manufacturing slumped further into recession. A big loss in the Dow Jones’ most heavily weighted stock also pressured the stock market.
The medium-term outlook for the Dow looks to be worsening as Trump’s move to break trade agreements with Argentina and Brazil could limit China’s appetite to negotiate a trade deal.
Stock Market at Risk as New Tariffs Erode US Credibility
Adding fresh uncertainty to the trade outlook, Trump announced he would be adding tariffs on steel imports from Argentina and Brazil.
In a remarkably frank take from ING’s Timme Spakman, the economist warns that the president’s decision to go after these trade partners have wide-reaching adverse effects on US credibility .