In my last post on Friday I was looking at a decent quality rally setup and that was looking good on Friday night, but Trump’s interviews on Sunday delivered a big decline yesterday. Trump’s comments in those interviews however were very illuminating about the likely direction on tariff policy over the next few months.
So, what did the interviews tell us? Well firstly Trump is very keen on imposing tariffs on most of the trading partners of the US and seems to be convinced that will bring in a lot of extra money for the US. I think he is seeing that as a heavy tax that the US can impose on trading partners for the privilege of trading with the US, and we have already seen that he seems to think that this won’t come at a heavy cost to the US.
(more…)