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He basically spent 2016 saying that there was a different political reality than the politicians and most voters knew, and it turned out he was right.
The laws of the economy suggest that markets should react and prices rise.
It's not that it has not had any consequences.
China, Mexico, India, maybe Europe. Who is next?
China was the largest trading partner of the United States in 2018, according to census data. Customs duties have helped bring it down to third place so far in 2019. The new US trading partner number one? Mexico, where Trump threatens to price each import to encourage the Mexican government to prevent Central American refugees from traveling to Mexico from the US border.
On the road to economic orthodoxy
The promises made to consumers have not shaken the US markets and other economic data continues to flow, which has emboldened the President and some of his advisers to argue that the rules of the perceived economy do not apply. not.
"I understand that, it's the economic orthodoxy that says when tariffs go up, consumer prices go up," White House acting chief of staff Mick Mulvaney said in a statement. interview with Fox News Sunday. "But the proof is in the pudding, there is no inflation, prices have not risen, we are putting tariffs on China, we are charging tariffs on Mexico and the United States. Inflation is still under control.This is because this outdated economic orthodoxy does not work when it is relatively easy to replace other goods, prices from China have increased. "
Aside from that Trump 's nationalism was first sold as a way to bring back jobs from China to the United States, not to send them to other Asian countries, like Vietnam. In the case of Mexico, tariffs are used as a political stick and could actually complicate the trade deal with Mexico that Trump wants Congress to ratify.
Not bluff
But the tariffs on tariffs could have a compound effect because they add prices here or there. And those 5 cents per burrito will mean more for Chipotle than for an individual consumer. Trump's strategy can draw the ultimate lesson: it takes time for these factors to hurt the economy.
Encourage the UK to break free from chains
While traveling to Europe for a state visit and commemorating the 75th anniversary of D-Day, Trump seemed to encourage the UK to adopt the same kind of gonzo trade bravery with an oblique reference to "chains" which could only be a reference to Brexit.
Most British want to conclude an exit agreement with the European Union to alleviate the shock on their economy, but Trump's political allies in this country, like the former Foreign Minister, Boris Johnson, who wishes to replace outgoing Prime Minister Theresa May the country out of the EU, agreement or not, comes a new deadline in October.
Trump seemed to be invoking Brexit and was mocking a trade deal between the UK and the UK "once the UK gets rid of its chains."
The message is that it would reward Britain for a stronger break with Europe.
The conventional wisdom is that tariffs pose a threat to the economy
Meanwhile, as Trump continues to raise rates and trust projects, business leaders are increasingly fearful.
You would not know about Trump's Twitter feed, which talks about the price he pays to China and his complaints about how his government is actively subsidizing the industry.
"China subsidizes its product so that it can continue to be sold in the US Many companies are leaving it for other countries, including the United States, to avoid paying the costs. No visible increase in costs or inflation, but US takes billions! "
His outgoing economic adviser did so though.
For two years, Kevin Hbadett chaired the Council of Economic Advisers of the White House. He was previously a supporter of free trade and sounded the alarm about the large national debt, although these views were tempered during his stay at the White House.
Hbadett's imminent departure, announced Sunday night, has nothing to do with Trump's tariffs or debt, he told CNN's Poppy Harlow.
He admitted that there were more and more questions about the economic outlook.
"The uncertainty about the forecasts is much greater than the last time we spoke," he said, citing an interview conducted a month ago. He said that growth would likely be less than the 3% promised by Trump, but that he was not afraid of a recession.
Why worry in Trump 's economy?
This story has been updated to reflect Friday's jobs report.
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