• Categories
  • Archives

READ: Brian Tyler Cohen Tweets ‘Dow Just Plummeted 799.36 Points, the 4th Biggest One-Day Drop in US History. The Top 3? All Took Place During the Trump Administration’

Oh dear.
donald trump, stock market drop, bryan tyler cohen, trade war

01 December 2018, Argentina, Buenos Aires: Federal Chancellor Merkel and Donald Trump, 45th President of the United States, meet at the G20 Summit Meeting Centre. The 'Group of 20' unites the strongest industrial nations and emerging economies. Photo: Ralf Hirschberger/dpa (Photo by Ralf Hirschberger/picture alliance via Getty Images)

Trump hit China with substantial tariffs earlier this year, which were in-kind met with retaliatory taxes from the Chinese government. Trump and Xi reportedly discussed ending the trade war, which has wreaked havoc among American farmers and manufacturers.

No end to the fiscal hostilities was reached, though the two leaders did agree to avoid future escalations… for now.

Trump, however, tweeted on Sunday that Xi had agreed to eliminate the 40 percent tariff on American cars.

This did not happen.

Trump’s Tuesday tweets in which he called himself a “Tariff Man” while pledging to continue putting the pressure on China totally undermine his claim that the trade war was over.

This mixed messaging, investors say, threw the markets into a tailspin Tuesday afternoon.

“People are still very concerned about the trade war,” said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors. “Financial markets are increasingly showing signs of fear of a recession.”

Other major financial institutions, such as JP Morgan, TD Ameritrade, Bank of America Merrill Lynch, and Goldman Sachs urged caution to traders.

Treasury Secretary Steve Mnuchin said the market “is now in a wait-and-see.” He told the Wall Street Journal’s CEO Council annual conference in Washington that the market “is trying to figure out is there going to be a real deal at the end of the 90 days or not.”

And while it is true the market fluctuates, soaring federal budget deficits and near full employment could indicate that the economic wave Trump rode into office may be about to dissipate.

Page 2 of 2
First | Prev | 1 | 2 | Next | Last
View All

Tags:

  • Hide Comments

  • Brandon Gage

    Political Writer

    Brandon began his writing career in a hospital bed in July, 2017. His mission is to provide insight ... keep reading

74 Shares