The financial markets are starting to resemble the 1930s Smoot-Hawley tariff era.
WE'VE SEEN THIS MOVIE BEFORE.
If the markets do not change, we're in for a lot of trouble.
More in my debate with UChicago Prof. Tomas Philipson on @AlArabiya_Eng: pic.twitter.com/SDuyYILkxb
— Steve Hanke (@steve_hanke) April 12, 2025
Right now we have the highest tariff rates in the world pic.twitter.com/4kdx4FjmMq
— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) April 13, 2025
🚨🇨🇳🇺🇸This is the big problem with US trade policy, it changes almost by the day, no almost by the hour. One day it's 145% tariffs on everything, the next morning 20+ percent of electronics are exempted, then in the afternoon these same electronics goods will get their own… pic.twitter.com/9w5WHzo3a7
— Barrett (@BarrettYouTube) April 14, 2025
Trump’s showdown with China deepens, with huge stakes for the economy
President Donald Trump is heading into another volatile week of his trade wars facing an urgent need to de-escalate the clash he ignited with China before it inflicts deep damage on the US economy.
Chinese President Xi Jinping is so far declining US pressure to call his American counterpart to seek a “deal” after the United States imposed 145% tariffs on its superpower rival, setting off a long-feared direct confrontation.
This leaves Trump repeatedly assuring Americans that his “great relationship” with the Chinese leader will head off a crisis but unable to initiate talks in a standoff that risks tanking stock markets again and imposing real hardships on Americans.
Despite the uncertainty, Trump is putting on a show of relishing multiple fights he set off, and he lapped up a standing ovation as he took a seat cage-side at a UFC mixed martial arts event in Florida on Saturday night. The president, who styles himself as an ultimate political fighter, told reporters his reception was “somewhat legendary” and showed that “we’re doing a good job.”
But the president’s conflict with China is a real-world showdown with far higher stakes.
https://edition.cnn.com/2025/04/14/politics/trump-china-xi-trade-war-recession-fears