How Trump is setting US reputation and creditworthiness alight
Investors may be too complacent about the risks posed by US President Donald Trump’s “America first” agenda. This is because some investors believe Trump’s bark is worse than his bite, and others are swayed by his pledges to deregulate the economy and cut corporate tax rates. Additionally, Trump’s capriciousness and willingness to pause tariffs on Canada and Mexico have contributed to this complacency.
The reasons for this complacency are twofold. Firstly, some investors believe that Trump's protectionist and anti-business policies will not have a significant impact on the US economy and markets. Secondly, Trump's unpredictability and willingness to engage in extreme brinkmanship have led some to believe that he is a deal maker who prioritizes financial stability.
However, there are also reasons to be concerned about the risks posed by Trump's agenda. His policies have the potential to lead to a trade war, which could have far-reaching consequences for the US and global economies. Additionally, Trump's willingness to eviscerate the US' most important trade agreement, the USMCA, could lead to a loss of confidence in the US as a reliable trading partner.
via SCMP Full Text Feed
Investors may be too complacent about the risks posed by US President Donald Trump’s “America first” agenda. This is because some investors believe Trump’s bark is worse than his bite, and others are swayed by his pledges to deregulate the economy and cut corporate tax rates. Additionally, Trump’s capriciousness and willingness to pause tariffs on Canada and Mexico have contributed to this complacency.
The reasons for this complacency are twofold. Firstly, some investors believe that Trump's protectionist and anti-business policies will not have a significant impact on the US economy and markets. Secondly, Trump's unpredictability and willingness to engage in extreme brinkmanship have led some to believe that he is a deal maker who prioritizes financial stability.
However, there are also reasons to be concerned about the risks posed by Trump's agenda. His policies have the potential to lead to a trade war, which could have far-reaching consequences for the US and global economies. Additionally, Trump's willingness to eviscerate the US' most important trade agreement, the USMCA, could lead to a loss of confidence in the US as a reliable trading partner.
via SCMP Full Text Feed
