Donald Trump never learns from his mistakes. Once again onerous trade sanctions imposed by this administration has the DOW dropping like a rock (700 points as of this writing). What was the excuse this time?:
European olives, chocolate, gin and beer made with malt are among the latest products that could be hit with steep tariffs as part of a US-European dispute over government subsidies to aircraft makers.
The US Trade Representative announced a list of 30 total products that could be subjected to new tariffs, noting the United States imports about $3.1 billion of these goods annually from Europe.
The United States already levied 15% to 25% tariffs on $7.5 billion worth of other European goods as part of this dispute. The new items could be hit with tariffs of as much as 100%, according to the notice.
The DOW is now lower than it was in January of 2018, 2 1/2+ years ago. That’s when Trump decided he would start a trade and go “America first.”
President Donald Trump slapped steep tariffs on imports of solar panels and washing machines, kicking off his second year in office by showing he is ready to start implementing his long-promised “America First” trade policy.
This was reported by the Wall St Journal the just before the big drop in the DOW: 1/22/2018. The stock market fell 3,000 points before turning around after March 2018.
Then again after September 21, 2018 the stock market took another descent, dropping another 4,000+ before bottoming out in December of 2018. And here was the headline on September 17th:
President Trump, emboldened by America’s economic strength and China’s economic slowdown, escalated his trade war with Beijing on Monday, saying the United States would impose tariffs on $200 billion worth of goods and was prepared to tax all imports.
Mr. Trump, in a statement released late Monday, showed no sign of backing down from the type of full-blown trade war between the world’s two largest economies that has rattled financial markets, saying he was prepared to “immediately” place tariffs on another $267 billion worth of imports “if China takes retaliatory action against our farmers or other industries.”
So here we have 3 separate occasions when Trump’s trade antics plunged the stock market. And his stupidity will probably cost him re-election.