Big Take The Trump Trade War’s First Casualty? The Bull Market
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Apr 7, 2025 John Authers, a Senior Markets Editor for Bloomberg and columnist for Bloomberg Opinion, shares his insights on Trump's trade war and its impact. He discusses the recent volatility in global markets and the downward revisions of S&P 500 targets by strategists. Authers elaborates on the significant effects of tariffs on investor sentiment and international reactions. He also touches on China's economic strategy in response to trade tensions and emphasizes the need for clarity in trade policies to stabilize markets.
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Market Horror
- Markets reacted with horror to Trump's tariff announcement, viewing it as a damaging policy error.
- The sell-off has been consistent, with the dollar initially weakening, suggesting a loss of confidence in the US.
Unexpected Implementation
- The sell-off is driven by the unexpected implementation of the tariffs, as many believed Trump wouldn't follow through.
- This contrasts with Trump's previous targeted approach and concern for market stability.
Cumulative Damage
- Jamie Dimon warns that tariffs' negative effects are cumulative and hard to reverse.
- Resolving the issue quickly is crucial to maintain trust in the US system.