Prznint Comrade has just launched his trade war:
“I can’t overstate the effect of Trump’s new tariffs, 25% on steel and 10% on aluminum. (As we reported Sunday, he upped the recommended 24% on steel to 25% because it’s a nice round number).
“Why it matters: These tariffs have the potential to roil markets and affect relationships with allies. Trump is also touching the third rail of international trade law — he’s using an arcane trade law known as Section 232 to justify his actions. He’s saying “F You” to the World Trade Organization and arguing the global overproduction of steel and aluminum constitutes a national security threat to the U.S. He’s also breaking with Capitol Hill and top officials — including Gary Cohn, James Mattis, Steven Mnuchin and Rex Tillerson — who have been arguing strenuously against these tariffs.”
And while Comrade Stupid might think that the steel mills will revive the rust belt, this will drive away the industries that use steel and aluminium, especially the automotive plants.
Put your seats in the upright position, this is gonna be a bumpy landing. MarketWatch already has noted the Dow dropped about 600 pts.