The Rest Is Money 154. Trump Turmoil: Why Billionaires Are Panicking
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Apr 8, 2025 Markets are in turmoil following Trump's controversial tariff announcements, leading to a significant drop in global stock prices. The hosts unpack the convoluted calculations behind these tariffs and their unexpected consequences on small businesses and international trade. Concerns loom over political instability and its potential to disrupt dollar-backed investments. With warning signs of market volatility and shifting investor sentiment, the discussion dives into the broader economic implications for corporate confidence and the U.S. dollar's future.
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Trump's Market Mayhem
- Trump's tariffs caused a three-day stock market crash similar to COVID or the 2008 crisis.
- Unlike previous crises caused by investor recklessness, this one stems from Trump's actions.
Flawed Tariff Formula
- Trump's tariff formula, based on trade deficits, disproportionately affects countries selling more to the US than they buy.
- This impacts countries like Vietnam, which structurally have trade imbalances with the US.
Botswana's Diamond Dilemma
- The US imposed a 50% tariff on Botswana, its highest, due to its diamond exports.
- This is because Botswana mainly exports diamonds to the US but doesn't import much.
