The Intelligence from The Economist Art of the real: Trump bows to markets
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Apr 10, 2025 Tom Standage, the Deputy Editor at The Economist, shares insights on the intriguing idea of building data centers in space. He discusses how this innovation could address energy efficiency and environmental concerns, utilizing new rocket tech and solar power. The conversation also emphasizes the relevance of 'The Great Gatsby' in today's society, linking its themes of ambition and wealth to current issues. Additionally, Standage analyzes the immediate impacts of Trump’s tariff pauses on global trade and market reactions, shedding light on complex international negotiations.
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Market Whiplash
- Trump's tariff decisions caused market whiplash, with the S&P 500 rising nearly 10% after a tariff delay.
- This action followed a period of market mayhem and confusion due to Trump's unpredictable trade policies.
Impulsive Policy
- Trump's tariff delay is not strategic genius but a reaction to market panic and advisor warnings of a recession.
- The bond market's reaction likely influenced Trump's decision, suggesting impulsive policy-making.
Trade War Continues
- The trade war isn't over, as a 10% blanket tariff remains on most imports.
- The delay only affects reciprocal tariffs, while the base tariff remains the highest in almost a century.
