Dow Crushed After New Trump Tariffs Threaten US Credibility Worldwide
Category: News & Politics
Via: krishna • 6 years ago • 7 commentsBy: Francois Aure @bullishtulips December 2, 2019
S E E D E D C O N T E N T
Photo: REUTERS/Kevin Lamarque
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- 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 .
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The move by Trump signals that trade deals with the US are of limited value.
A definitive exemption from tariffs was only granted to Argentina and Brazil last year after they agreed to limit their steel exports to the US. Clearly, such agreements can be discarded when the political winds shift.
Earlier this year, President Trump threatened to impose tariffs on Mexico unless it tackled the issue of illegal immigration. That decision also took the market by surprise given that the US and Mexico had only recently concluded negotiations on a USMCA trade deal.
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 .
This is only going to get worse over time.
Market is down 400 pts today, after Trump said a deal with China on trade may not happen before the election almost a year away.
The market allows itself to be manipulated by Trump's babblings. I wonder if he or his friends and family are benefiting financially from his comments where he says something that lowers or raises the market hundreds of points in an hour.
There's no doubt in my mind that they are.
Trump want the market to keep going up-- he feels that's important to make him look good.
So when it starts to move down (for any reason) he makes some vague (& meaningless!) comment,such as:
Negotiations are going well
or
I just had a talk with Chinese President Xi and we are getting closer to an agreement.:
or
I just had a good talk with President Xi.
When people hear that, some of the more naive feel good, and buy stocks sending the market up. But of course saying the talks are going well is not the same as actually reaching a deal! However gullbile people still believe trump's lies...
Now, in response to your comment: Yes there's not the slightest doubtin my mind that he tips off his cronies in advance so they can take advantage of his upsoming comment. (technically this is "insider trading"-- which is illegal).
But either they won't get caught-- or if they do and are sent to jail as have been some of Trump's associates, Trump himself will suffer no consequences.
As someone who has been crooked all his life, it would be surprising if Trump didnt tell someone (like his family or "friends") that he was going to make a vague positive comment about "trade" that would send the market up. Buy before it goes up = good plan.