Link to Article:https://thehill.com/homenews/administration/5235841-white-house-dismisses-rumor-that-led-markets-to-jump-fake-news/
Somehow, the rumor started that Trump was going to put a 90-day pause on tariffs, which the White House rebuffed as ‘fake news.’ However, this news caused the market to go up again as people felt safe investing, thinking that companies had time to relocate their resources, which went back down after the White House announcement. The rumor occurred after the supposed misinterpretation of an interview on Fox News with host Hesset. People are still worried about the effects of the tariffs and how long it will take for companies to bring production to America. Even Trump supporters are becoming more and more concerned with tariffs.
This article really shows how panicked people are over the future of the economy as large tariffs are being brought back without taxes being lowered. Prices are already high, anything that is imported, which is a lot of American goods to start with, are going to receive an additional price hike. American made product that might have been to expensive are going to become the ‘affordable’ option in the near future. Also, with Liberal theory being the prevailing approach to International relations over the last few decades, this infringement on trade, one of the major resting points of Liberal theory, is going to have an affect on our allied relationships. trust has been broken and everyone is going to think twice before helping each other again.
If people want tariffs to go down, all global Leaders are going to have to set aside their pride and talk out new trade agreements. Who the trade agreements are going to benefit in the end depends on the stubbornness of each leader and how much the US and other Countries depend on each other. The Next 6 mother to year are going to be the craziest we have seen in the markets. Trump wants to completely up -end the American Companies and is having to sacrifice relationships with other countries in order to do so. But all this, he says at least, is to improve the American Economy. Trump was/is a businessman, he has to know what he is doing. Weather its the right thing to do or not can only be told with time.