Thanks to stockpiling neither the markets nor consumers have been as badly affected by the trade wars as feared. But signs of trouble are looming
Chaotic and unpredictable, keeping up with Donald Trump’s volatile trade war – never mind his presidency – can be tough.
Back in April after his “Liberation Day” tariff announcement, the talk was of the president crashing the global economy. Then, after a Wall Street backlash, the world learned the acronym “Taco”, which stands for “Trump Always Chickens Out”. Now, things are heating up again.
The president’s decision to hit US trading partners with new tariffs – including Canada, Brazil, India and Taiwan – after his self-imposed 1 August deadline certainly reignites a threat to the world economy. Dozens of countries have been left reeling, and US consumers are expected to pay a heavy price.
However, there is a sense that things could have been worse. Nowhere more clearly is this reflected than on Wall Street: despite the chaos of the president’s trade war, the stock market remains close to record levels.
