Tariffman Punches Back!

Trade Wars

Tariffman!

Prznint Tariffs  announced on Twitter(!) that he will impose 10 percent tariffs on the remaining $300 billion of imports from China.

And of course, China responded:

“China’s government has threatened unspecified ‘necessary countermeasures’ if Trump’s planned tariff hike goes ahead.

“The Commerce Ministry said Trump’s announcement is a violation of his agreement with President Xi Jinping in June to revive negotiations aimed at ending their fight over Beijing’s trade surplus and technology ambitions.

“The ministry said if the U.S. measures took effect, ‘China will have to take necessary countermeasures to resolutely defend its core interests.’ The statement issued Friday continued, ‘All the consequences will be borne by the United States.’”

And of course, the stock market responded (WSJ):

“The Stoxx Europe 600 fell 1.5%, led by losses in the basic resources sector. AMS, the semiconductor company, was the worst performer in the region with a drop of 13%.

“In Asia, most regional stock markets declined. Benchmarks in Japan and Hong Kong retreated more than 2%. In mainland China, the Shanghai Composite dropped 1.4%. Equities in Australia also weakened.”

The Dow Jones index dropped 300 points within minutes of the announcement, despite the Fed rate cut yesterday.

So how did Prznint McDeals get us here? Last we heard—JUST LAST WEEK—he was crowing that China was about to buy boatloads of US agriculture products?

So, consistency is not his strong suit!

But wait! There’s more! “Trump tariff threat pushes up chance for Fed rate cuts as recession risks rise”

  • President Donald Trump’s threat of new tariffs creates a new risk for the markets and increases the chances of recession, economists and strategists said.
  • But the president may also get the reaction he has been seeking from the Fed — a deeper round of rate cuts.
  • The odds of a September rate cut jumped to nearly 100% in the futures market after Trump’s tweet on the tariffs Thursday, up from just over 50% earlier in the day.

So is this really all about getting the rate cuts he wanted from the Fed to stimulate the economy right before the 2020 Goat Rodeo?

“If he follows through on that threat, that is the fodder for recessions,” said Mark Zandi, chief economist at Moody’s Analytics. “Recession odds probably go over even, and I think it would be pretty hard to avoid a downturn, regardless of what the Fed does.The Fed will have to respond and the Fed will have to cut rates. The bond market will get what it is anticipating, and that is four rate cuts.”

Jeebus, this seems accurate to me:

No matter how you slice-n-dice it, we’re totally eff’ed in the dark.

This entry was posted in Lord Damp Nut, The Russian Usurper, Tariff enthusiast Robert Lighthizer, The Miracle of the Trump Economy, Trade Wars. Bookmark the permalink.

6 Responses to Tariffman Punches Back!

  1. skinnydennis says:

    Initial reaction to oil prices taking a dump on this news at an oil tracking newsblog is that it’s the fault of the Fed. Populated by r/w deniers and Trump (not his fault!) sympathiers, of course.

    Liked by 1 person

  2. R White says:

    How many quatloos do you wanna bet that fat nixon has cocaine kudlow and others short selling the market right now? It would be interesting if we had actual journalists in the beltway media…

    Liked by 2 people

  3. MDavis says:

    How soon do we hear that this drop in the stock market is Obama’s fault, with a side of “Hillary did it”?

    Like

  4. Karla says:

    I don’t think that the economy or the goat rodeo is his first concern. Every time there’s a rate cut, his debts costs him less. He is always most likely to do what helps trump.

    Liked by 1 person

  5. angryapittle says:

    My gawd trump has go to be the stupidest damned president in history.

    Like

  6. H-Bob says:

    “my friend President Xi said that he would stop the sale of Fentanyl to the United States” — why should China stop its payback for the Opium trade ?

    Like

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