If implemented, the total amount of tariffs the Trump administration has proposed on China would rise from around $500bn to nearly $800bn, or about 4 times the cumulative amount that had been proposed as of a month ago.
The Supreme Court just overturned a 1992 ruling (which had limited online tax collections), thus freeing states and local governments to start collecting billions of dollars in sales taxes from internet retailers that don’t currently charge tax to their customers.
The markets today are only focused on the growth side of things – deregulation, tax cuts, and fiscal stimulus. But the risk of tit-for-tat trade tariffs – on top of declining world trade volumes – is making a collapse in global earnings verylikely.
After 6 consecutive declines in the Dow Jones, the longest stretch since March 2017, and erasing all of 2018’s gains, the cash index is finally set for a rebound, trading some 130 points higher as the trade war panic fades, for now.