(Bloomberg) — The alarm from economists has been clear for months: Brace yourself. If he delivers on his campaign promises for an aggressive package of new US tariffs, they’ve warned, a re-elected Donald Trump will set the stage for a historic period of turmoil in the global economy.
And yet there’s a reason CEOs, bankers, investors and even Trump advisers have largely shrugged off warnings about the damage a 10%-to-20% universal tariff and even higher import duties on China would do, or the resurgence in US inflation they might bring.
From the incoming president’s own track record, many see evidence Trump is unlikely to deliver on all he has threatened, and express confidence they can adapt to whatever he delivers this time around.
Even as economists decried his plans as a terrible miscalculation, Trump ratcheted up protectionist threats on the campaign trail because they were a key part of an agenda popular with voters. After his win, he claimed a license to deliver on those promises.
“America has given us an unprecedented and powerful mandate,” Trump told supporters. “Success is going to bring us together, and we are going to start by all putting America first.”
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