Trump stays the course
Even President Trump has acknowledged that his pugnacious economic agenda is looking increasingly risky. Asked on Fox News this weekend if he expected a recession this year, he allowed only, “I hate to predict things like that.”
That dodge comes as his trade war continues to escalate and companies warn that his steep government cuts and immigration crackdown may cost them financially. The question is: Will the president stick with his plans?
The latest: Beijing has begun imposing tariffs on U.S. agricultural goods — including key exports like chicken, wheat, soybeans and pork — as well as blocking or limiting some American companies’ access to the Chinese market.
Stock futures are pointing to another rough market open. Last week, the S&P 500 suffered its worst one-week fall in six months.
China’s tariffs may actually take a while to kick in, but they represent the latest consequences of a battle that Trump has actively sought. Meanwhile, Canada’s new leader has promised to fight back, including by supporting retaliatory tariffs. (More on that below.) For now, Mexico is holding off on similar counterpunches, but its president, Claudia Sheinbaum, said on Sunday that she would act if need be.
The outlook for tariffs looks cloudy. While Trump abruptly gave Canada and Mexico a reprieve late last week, he is set to impose a 25 percent tariff on steel and aluminum imports starting Wednesday, and more levies next month.
