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submitted 2 years ago* (last edited 2 years ago) by b3an@lemmy.world to c/world@lemmy.world

Six weeks into his second term, the U.S. president has hit imports from Mexico and Canada with 25% levies, put an additional 20% tariff on goods from China, threatened reciprocal tariffs globally and cut off military aid to Ukraine.

But instead of the rising yields and higher dollar that investors had wagered on in November, the so-called "Trump trade" is in full retreat.

Trade conflict has begun in earnest and the dollar is falling while bond yields dive.

U.S. allies are rattled. As Goldman Sachs analysts note, the average tariff rate on imports from China is now 34% and the increase is already roughly twice as large as that in the first Trump administration. Nobody wants to bet anymore that there will be swift compromises or deals.

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[-] tal@lemmy.today 14 points 2 years ago

"I'm spending a lot of time talking to CEOs who are really trying to understand the consequence of some of this," said Goldman Sachs CEO David Solomon at conference in Australia.

"Until there's more certainty, we have a little bit more runway time. I think we're going to live with a slightly higher level of volatility. But I think he (Trump) has a purposeful direction that he's pursuing, and we should take him at his word that he's going to pursue that direction."

I mean, I think that there's an extremely straightforward purposeful direction. He campaigned on tariffs. He appeals principally to a group of people who want protectionist trade policy. Those people are in swing states and don't like trade with Canada and Mexico. He's worked hard to give the impression that he's adopted protectionist policy in the past. Why would he stop?

I don't think that there needs to be some kind of more-complicated plan. You've already got a plan on the table in front of you. The only degree of complication is that Trump's tended to aim to give the impression that he's adopting considerably more-protectionist trade policy than he actually is.

this post was submitted on 04 Mar 2025
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