Cutting Through the Trade War: Expert Insights on Trump's Tariffs and Economic Future
- Penned by Jannik Tillar
- Approx Reading Time: Just Over 4 Mins
Enhanced policy modifications required to counteract Trump's administration. - "For impeding Trump, deeper price drops are essential"
Chief Economist Krämer's Perspective: Tired of the market rollercoaster since Trump's tariff press? No surprise—Trump's crackdown on globalization shows no signs of letting up anytime soon. Krämer shares his candid assessment of the economic chaos on the horizon.
The Question: After the turmoil that Trump's trade wars have stirred up since April 2, what's the real story on the markets? Is the gold rush back to normal?
Krämer's Answer: Long story short? Adiós to the good ol' days of globalization. Trump's war on free trade has brought prosperity to a screeching halt, and the world might never get it back.
But What About the Financial Markets?
This dance of disaster depends heavily on negotiations—and that goes double for the stock exchanges. If nothing comes of the trade talks, expect to see some brutal market plummets. If a deal gets struck, it's not gonna be pretty, but losses should be kept to a minimum. Krämer predicts lasting scars on the markets, thanks to the prolonged doubt Trump continues to cast over our economic future.
Gather 'Round, SME's:
Trump's temper tantrum is really hurting small- and medium-sized companies across the pond. Feelings of betrayal surround America like a dark cloud—nobody knows what to expect from their investment over there. Uncertainty reigns supreme, and SME's are deep in the doldrums as a result.
And the Recession Talk Starts...
Yup, it's almost here. With such a toxic environment looming, it won't be long before the recession threshold smacks the American economy square in the kisser.
Getting Tariffed Down:
Brace yourselves, EU—Trump's just demanding more tariff cuts on both sides, and it's a bumpy ride to get there. Krämer called for action like this back in 2016, but car tariffs did his head in. (Don't blame him.) But there's one thing ALL parties can agree on: Trudeau's 'Mar-a-Lago accord' is just a tad out of left field.
But, Trump—""What Do They Want From Me?!”"
Can the markets rein in the trumpster and make him see sanity? Probably not yet, at least nothing comparable to the heartstopping chaos Liz Truss experienced. A lot of long-term investors are still clutching their profit gains, but if the market volatility doesn't dial back soon, we're in for rough sledding.
An Avalanche of Rumors:
The whisper game is on high alert regarding Trump: Is he a genius turning the economy upside down to boost Bitcoin? Is he solely interested in weakening the dollar and strengthening Mar-a-Lago? Krämer isn't falling for any of that nonsense; he predicts Trump's love of tariffs will only lead to America's economic bleeding.
Building a Trump-Proof Portfolio:
Profiting in Trump's crazy world is no simple trick. Betting on specific industries like defense and infrastructure will yield marginal gains. But if you're looking to protect your assets from economic ruin, well... expect the risk to be high.
Getting the Skinny: Tariffs, Trump, and More
Key Words:- Tariffs- Donald Trump- Commerzbank- SMEs- USA
Additional Insight:
- Severe Economic Impact: The ongoing tariff tensions are expected to cause significant economic issues, such as a slowdown in global GDP and an increase in market volatility [1].
- Industry Specific Effects: The imposed tariffs have had mixed results on industries, with some sectors, like manufacturing and steel production, experiencing a rise in domestic production. However, in terms of prices, impacts have generally been nominal [2].
- Countermeasures: As a response to Trump's tariffs, countries like the EU have threatened to impose counter-measures, such as reciprocal tariffs, which could exacerbate trade tensions and further impact global markets [3].
[1] “Trump's Trade War and the Impact on the Global Economy.” CNBC. July 30, 2018. https://www.cnbc.com/2018/07/30/trumps-trade-war-and-the-impact-on-the-global-economy.html.
[2] “Trump's Tariffs and Their Effect on the U.S. Economy.” Brookings. September 18, 2018. https://www.brookings.edu/blog/up-front/2018/09/18/trumps-tariffs-and-their-effects-on-the-u-s-economy/.
[3] “Trump's Tariffs on Imports: What You Need to Know.” Investopedia. August 28, 2018. https://www.investopedia.com/terms/t/tariffs-on-imports-what-you-need-to-know.asp.
- The Commission, in light of Trump's tariffs and their impact on the global economy, has also been asked to submit a proposal for a directive on the protection of the environment, as the ongoing trade wars may lead to increased market volatility and environmental degradation.
- The markets have reacted to Trump's tariffs with uncertainty, with small- and medium-sized enterprises (SMEs) being particularly vulnerable to the prolonged doubt over the economic future.
- The markets may rightly view Trump's demand for more tariff cuts as a symptom of a toxic economic environment, with lasting scars on the markets as a result of the prolonged trade tensions.
