Mike, I agree with you that looking at market futures we're in for a nasty market for awhile. The question might be, what if Trump says he got better deals from Mexico and Canada and drops these tariffs.
I certainly don't know this will happen, I'm no friend of Trump or tariffs, but I don't know that such a declaration wouldn't send the market flying.
Personally I see no upside to tariffs as it's Americans who'll pay more for products coming in from elsewhere if those products aren't being subsidized where they're coming from to not permit competition for sales from here.
In Mexico's case, I believe that they aren't subsidizing things like avocados, or growing the plants that become tequila, etc. We do grow a lot of avocados here in California, but not enough to meet the world demand. I also believe American companies like Ford and GM have chosen both Canada and Mexico to build much that goes into cars with American name brands, and probably those built by foreign named manufacturers who have production plants here. Is it right to make all these products more expensive.
I believe that if Canada or Mexico were subsidizing a given product and we could compete with that product if it weren't subsidized, then tariff that product.
These tariffs are punitive, demanding fewer illegal drugs and aliens to come in. All Trump really needs to do is say Canada and Mexico agreed to do better, and drop the tariffs and the markets will fly. I don't know if it will happen tomorrow, but suspect that it will happen and Trump will claim victory.
As for China, I'm just watching the 60 Minute story on that and while I don't agree, at least you know who's driving Trump.
Gary
Bullish
AI
Market Data 
Markets 
