With no allusion to impropriety at all it does seem as if Donald Trump is handling tariffs in a way technical day trading is undertaken in markets. When ‘resistance’ due to home influence (car makers) or ugly stock markets is experienced, tariffs are unwound; in circumstances of ‘support’ where concession might be gained, tariffs are increased.
Money is a coward. It hates unpredictability and when it sees one it runs. This has happened to equities, the dollar, and oil as the laws of economics clash with ideology and capriciousness. In the latest twist of the tariff saga US stock indices dropped sharply yesterday with the Nasdaq Composite index down more than 10% in less than 3 weeks.
The recent sting of tariffs has received some reprieve by the US delaying implementation on the auto industries of Canada and Mexico by 30 days. It is a cynical move and only undertaken as the largest casualty might just be the US car giants that ship materials and parts several times across each border before a unit is finished.
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