Well, that was quite a day … don’t you think? The Dow Jones Industrial Average opened today in the tank per usual the past few days.
Then Donald Trump announced he would suspend tariffs levied against most nations for 90 days … except for China. What happened next was a rally for the books.
The DJIA launched itself into heavens, closing up nearly 3,000 points. The Standard and Poors 500 finished even stronger percentage-wise.
What does all of this say about Trump’s tariff tempest? It tells me that investors who control people’s retirement accounts, their livelihoods, and their run-around funds think ill of the notion of penalizing Americans because the president of the USA doesn’t understand the damage tariffs do here at home.
Trump’s tariffs would raise the cost of damn near everything we buy, given that we are a nation that imports so many essential goods, services and commodities.
Investors have good reason to be skittish over Trump’s unilateral — and unprovoked — trade war against our closest allies and trading partners. If investors are squeamish about it, think of how all of this affects people like you and me.
And do you believe Trump has any interest in protecting the interests of those he was elected to govern? If he stalls implementation of the tariffs and seeks better trade deals with our partners, then I’ll cling to a glimmer of hope that he does care.
However, I am not betting the farm on it.