The negative reaction in financial markets undoubtedly played a key role in making President Trump reconsider his eye-wateringly high tariffs on China and his ill-advised plans to fire Fed Chair Jerome Powell. But we suspect the dawning reality of what those tariffs will do to the domestic economy also forced the rethink. It wasn’t a coincidence that, the day after Trump met with key retailers, he publicly acknowledged that the tariffs on China would have to “come down substantially”.
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