Too bad this didn’t happen a few weeks ago, we might have been spared Pam Bondi raving about how well the stock market is doing. In any event, we have a shaky market today after Trump decided on his global tariffs as *revenge* against a conservative Supreme Court, go figure that one. And John Roberts is undoubtedly lapping up Trump’s criticism with a spoon because it makes the court look independent again. The Guardian:
Stock markets stumbled on Monday as Donald Trump pushed ahead with fresh tariffs on the US’s trading partners despite a supreme court strike-down and growing opposition from domestic voters.
Uncertainty over the status of global trade deals spooked investors, trigging a drop in US shares prices including on the Dow Jones industrial average, which tumbled 1.4% in morning trading. The S&P 500 and Nasdaq 100 also fell 0.9% and 1.1%, after losses for European stock markets.
Shareholders were struggling to discern the next steps in Trump’s global trade war, after the US supreme court ruled on Friday that the president overstepped his legal authority by using emergency measures to impose tariffs on countries across the world last year.
However, Trump went on to announce over the weekend that he would push ahead and impose temporary tariffs on US imports from all countries: first declaring a 10% rate, before increasing that figure to 15%, under a never-before-used section of the Trade Act of 1974.
Trump used his Truth Social platform on Monday to warn he could end up imposing tariffs in a “much more powerful and obnoxious way”, before threatening world leaders over their plans to reassess trade deals in light of the court ruling. “Any Country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘Ripped Off’ the U.S.A. for years, and even decades, will be met with a much higher Tariff, and worse, than that which they just recently agreed to. BUYER BEWARE!!!” Trump said.
Buyer beware should have rightfully been the motto for Trump’s campaigns, all three of them. Time for him to chicken out soon. It’s always when the stock market wobbles that Trump retreats. Lets see if he holds up true to form.
Boy, can he ever make a mess. US importers will be demanding refunds while at the same time trying to figure out his new tariff of 15%, which would expire in 150 days in any case. So, if I’m one of those importers I’m going to submit my claim and if Treasury doesn’t pay up, I’m going to withhold any further tariff payments pending court challenges.
As one commenter said, “It’s simple. If trump wants his tariffs he’s going to have to to through Congress to get them.” And even though he has majorities in both houses, he and we know that’s a very hard sell. Nothing but uncertainty ahead, and the stock market just LOVES uncertainty. How long before it collapses and trump’s last stand is rumble?