And Then, Depression Set In

The cost of tariffs will not be popular when they make their way down to voters. And that definitely includes Trump voters. They’re not too popular with economists either. “The world economy could face a crash similar to the Great Depression of the 1930s unless the U.S. rows back on its plans to impose steep tariffs on imports, a senior official at the International Chamber of Commerce warned.” WSJ (Gift Article): Tariff War Risks Sinking World Into New Great Depression, International Chamber of Commerce Warns.

+ The big question, of course, is how many of the tariffs on Canada and Mexico will actually stick. The flip flops by the administration have created wild volatility in the markets (and suggest there’s not really a hardfast plan other than chaos). Right now, the market thinks the tariff announcements are total B$. White House open to more exemptions after pausing auto tariffs.

+ If the tariffs end up amounting to nothing (which is my bet), then what’s the point of offending our neighbor and close ally? Americans are unhappy with Trump’s tariffs. Canadians are furious.