Submitted by Pedro Nicolaci da Costa via The Peterson Institute for International Economics,
Are investors so focused on Dow 20,000 that they’ve become complacent about the true risks of Donald Trump’s vows to tear up trade agreements, erect 17 commercial tariffs, and deport millions of immigrants?
So far, markets have focused on the purportedly bullish portion of his broad-brush economic proposals – corporate tax cuts and loose plans for infrastructure spending. But they have largely neglected Trump’s potentially devastating approach to trade, one which scholars at the Peterson Institute for International Economics found could lead to a damaging, protracted trade war. The September report identified specific industries and localities that would be most deeply affected by a trade war with major US trading partners. And it’s not a pretty picture.
This post was published at Zero Hedge on Jan 7, 2017.