[ad_1]
President Trump may not have the intention of launching the second cold war, but his tweets today point the way forward.
Why it's important: The president is using Twitter to demand a conscious decoupling of the two largest economies in the world.
Tweets from Trump, sent after China announced retaliatory tariffs on $ 75 billion worth of US goods:
- "Our big American companies are ordered immediately start looking for an alternative to China, including bringing your business home and manufacturing your products in the United States. "
- "I order all carriers, including Fed Ex, Amazon, UPS and La Poste, to SEARCH AND REFUSE all fentanyl shipments from China (or any other place!) "
Verification of reality: Presidents should not order companies to return home.
Between the lines: Earlier in the day, Fed Chairman Jay Powell warned that "the uncertainty of trade policy" was a determining factor in market fears.
- Trump's answer: "My only question is: who is our biggest enemy, Jay Powell or President Xi?"
In the wings: Trump recently told his advisers that he would be perfectly happy if the United States did not trade with China, says Axios' Jonathan Swan.
- At the end of 2017, Trump at first surprised his associates by evoking the impossible idea of cutting off any trade with China.
And after: Sources informed of the president's reaction this morning say that they expect it to announce other tariffs soon.
The bottom line: All of this has diminished during a strong economy. Imagine how difficult it would be for things to turn in the other direction.
[ad_2]
Source link