Monday, January 29, 2018

How to lose a trade war even before it begins

As we wait for Donald Trump's first State of the Union address, investors are left to wonder which Trump will show up before Congress on Tuesday. Will it be Teleprompter Trump, whose well-crafted speech will be interpreted favorably by the markets, or Twitter Trump, whose utterances will spook the markets?

Why tariffs won't work
Trump will undoubtedly make comments about trade policy, which was a centerpiece of his campaign (see Sleepwalking toward a possible trade war).

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