By Christopher Versace via Iris.xyz
We continue to think Trump is following the negotiating strategies he laid out in his 1987 book, Art of the Deal, however, should Trump actually enact the trade tariffs on steel and aluminum, then what? As investors, we have to game out the potential outcomes so we can assess the potential risk and position ourselves accordingly.
After a whipsaw trading week as we ended February and started the final month of the 1st Quarter, this week we are pondering all the implications of President Trump’s Tariff talk. As Tematica’s Chief Macro Strategist, Lenore Hawkins, discussed in last week’s Weekly Wrap, the markets were blindsided last Thursday when President Trump announced that the U.S. will implement a 25% import tariff on steel and 10% tariff on aluminum.
Last weekend, in response to any retaliation from the EU, Trump tweeted a counter move.
The President’s fresh injection of uncertainty led equities to sell off again this Monday morning as investors and talking heads alike chewed on potential implications to be had.
On Fox Business’s The Intelligence Report with Trish Regan last Friday afternoon I shared my view that we have to question whether President Trump will go ahead with these proposed tariffs or is it a negotiating tactic at a time when NAFTA negotiations remain underway?
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