Market tolerance could embolden Trump to hold firm on tariffs, says Wolfe https://t.co/pG7qyxuyfa
Up until now, the market has shrugged off just about everything. I wonder if this tariff foolishness is finally going to catch up to Trump. My guess is the market is going to majorly correct between now and the fall. Specifically, I think you’re going to see a 25% correction.
The stock market shrugged at Trump’s new tariff announcement this week, with investors assuming that the president would chicken out again, @AnnieLowrey writes. But “businesses are struggling to negotiate the uncertainty created by the White House”: https://t.co/eZ5Axxkn3C
Former President Donald Trump has reintroduced tariffs that have previously unsettled the global economy. While his earlier tariff measures caused widespread economic disruption, Trump is now betting that the current round will yield different outcomes. The tariffs implemented in April triggered market anxiety among investors, consumers, and businesses, with many anticipating that Trump might back down as before. However, there is growing concern that this time he may maintain his stance, potentially prolonging economic uncertainty. Despite the initial muted reaction from stock markets, which seem to be assuming a repeat of past behavior, businesses are reportedly struggling to navigate the unpredictability created by the White House's trade policies. Some market analysts predict a significant market correction, estimating a possible 25% decline in the coming months if the tariffs persist. The market's current tolerance of the tariffs may encourage Trump to hold firm on his trade strategy.