Why Markets May Soon Call America’s Tariff Bluff by Pinelopi Koujianou Goldberg

Financial markets have so far mitigated the impact of US President Donald Trump’s tariff threats by repeatedly forcing him to back down. But if investors become desensitized to Trump’s trade theatrics, they may embolden him to follow through.

NEW HAVEN – Three months after President Donald Trump announced plans to impose sweeping new tariffs on most countries, the US economy appears surprisingly resilient. The stock market has rebounded from its initial slump, inflation remains under control, and fears of a recession have receded – or at least they had before Trump announced a new 30% tariff on imports from Mexico and the European Union, two of America’s biggest trading partners.