Trump doubles down
At first, Trump's trade rhetoric was dismissed as 'all talk'.
Now that we've got the action on steel and aluminum, it's time for a rethink.
In his latest tweet, Trump hints that this is just the beginning. The said reciprocal taxes are coming and highlights the US trade deficit.
It doesn't take much imagination to see how this could get out of hand. Canada and the EU are already talking about retaliation.
Just on the steel front alone, almost half of US iron ore imports come from Canada with 39% coming from Brazil.
A move to curb those exports or retaliate by raising prices is going to severely hurt the US.
No one really knows where this is going but the market could easily hit the panic button -- and this time with a good reason.
The yen is starting to look awfully attractive.
