Quote:
Originally Posted by Clocker
" Stocks Slammed on Latest Trump Tariff Fears"
https://www.thestreet.com/markets/st...p</b>-14632040
Trump's trade policies are based on the assumption that tariffs will increase consumer prices and thus make domestic products more competitive with imports. If the tariffs do what Trumps wants, consumer prices will rise. If prices don't increase, then Trump's tariffs are a failure and consumers will continue to buy imported goods.
We have seen some indication that prices are increasing, but from what Trump is saying, there are still a lot more tariffs to come. There is certainly no evidence that the tariffs already in place are of benefit to the majority of companies or consumers.
I don't follow the market, but it appears that they are mostly waiting to see which direction things go. Stocks of companies that will be helped by tariffs have gone up, like steel companies. |
No, not really but... so what, right?
Trump announced his presidency in July 2015. He said on that day, and just about every day since right up to Nov. 2016 that he will return manufacturing jobs to the country and
incorporate tariffs to reverse the huge trade deficits that had grown exponentially since 'free' trade treaties such as NAFTA were signed. The carnage to the US manufacturing industry and loss of jobs grew on an annual basis since the late 1970s and Trump said it this has to stop.
Trump promised to reverse all this.
He campaigned on this issue. The whole country, plus the investing and finance industry knew what Trump's view and intentions were per trade deals and trade deficits. The huge run-up in equity prices since The Trump Era began is undeniable despite the best efforts of the Trump bashers.
A week before the Election of 2016 the Dow Jones closed at about
17,800.
Today, July 13, 2018, the DJIA is now at 25,050 or so as I type this.
So all those on here that want to believe that the Trump 'tariffs' will kill both the economy and the stock market are simply kidding themselves.
