As world leaders reacted to the US president’s “liberation day” tariff policies demolishing the international trading order, about $2.5tn (£1.9tn) was wiped off Wall Street and share prices in other financial centres across the globe.
World leaders from Brussels to Beijing rounded on Trump. China condemned “unilateral bullying” practices and the EU said it was drawing up countermeasures.
While Trump timed his Wednesday evening Rose Garden address to avoid live tickers of crashing stock markets, that fate arrived when Asian exchanges opened hours later.
The biggest take away I see from this is how easy it was to remove $2.5 trillion dollars … yet the world didn’t end.
Check your pension fund
As long as American products are not competitive in international markets, be it because of price, quality, or marketability, there will always be a trade deficit.
Just take cars. The US produces cars basically for the American market only. No other country produces or uses cars like that. But they all produce cars they like, that other countries like, and even Americans like.
American car companies cannot expect to sell goods to other countries that simply have no markets in those countries.
Looks like the American stock market was hit the hardest…
