The markets will only care if tarrifs are actually put into effects. That would directly increase inflation and reduce profits for the companies affected....both bad things for the markets. That said, even with this news looming, the economy is the strongest it has been in 2 decades. The markets will continue higher regardless.
Actually, if you'd paid closer attention, you would realize that it is the business leaders and CEOs that drive the gains. If any government institution holds the cards, it's the Federal Reserve, not the President. How else do you explain the market's recovery from the Financial Crisis. (Hint, it wasn't the big O'. Christ, what did he do ?? it was the Federal Reserve and company CEOs).
Wow, the stock market sure has evolved, no longer caring about Gary's departure. Gary and his ilk of the Trump Administration (Steve Mnuchin & Larry Kudlow) have lost out in favor of trade hawks Robert Lighthizer & Peter Navarro. These guys are aligned with Trump's America 1st Policy, and are looking to "right" the "wrongs" of previous trade agreements, particularly w/ China.
The stock market is just now starting to realize that there just might be a Trade War. Trump will not back down on this, and neither does China (for now). Expect a bumpy(ier) ride on the stock market in early July.
Inflation is the biggest threat right now and this developing trade war is the fly in the ointment so to speak. Trumps politics on the economy don't really seem put together with much logic and though....more like "let's see what happens".
.....keeping my fingers crossed that inflation doesn't spike over 2%.
thought
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