The recent jigs and zags in the US stock market have sparked considerable excitement. Wall Street professionals, private money managers and millennial index fund enthusiasts are all whipped up and down by the rapid up and down movement of the market. It seems that no one goes ahead of President Trump. “Make up for it like you go.” Customs game.
Trump clarified the rules of the game to reporters in the oval office on March 21st. Specifically, he intends to be flexible in dealing with tariffs for the benefit of American companies. Trump It is listed:
“I gave American car companies a break because if I didn’t, it would have been unfair. I didn’t change my mind. [automakers]. ”
“Instead of taking that properly, they said, ‘Oh, he’s changed.’ I don’t change, but the word flexibility can be flexible, but it’s basically flexible. ”
What does this mean?
Perhaps Trump’s big announcement of import duties on April 2, which he calls “the day of liberation,” will add some clarity. However, there are several reservations. The tariff schedule announced on the release date could be a starting point for discussion and negotiations.
For Trump, you know, everything is negotiable. Concessions and exceptions are expected to be mutual. In short, tariffs change to Trump’s perceived needs at certain moments.
This leaves Trump’s tariff policies uncertain. Furthermore, the prices of imported goods, and as a result, export prices are arbitrarily adjusted by political means, making it impossible for businesses to properly plan, budget and invest in quarterly and a year ago.
Extreme flexibility
In 2009, registered dietitian Dawn Jackson Bratner came up with a novel idea. She found this idea to be extremely exciting. So she wrote a book about it.
That’s the title of the book Flexitarian diet. And the big idea that Bratner revealed was that you could become a vegetarian and still eat meat. Therefore, “flex”.
Roman Book, Chapters 14, verses 2 and 3, the Apostle Paul say Us:
“Some people’s faith allows them to eat something, while others only eat vegetables, who have weak faith. Those who eat everything should not treat those who do not.
In the economic prism here, like God, we accept vegetarians. So we also accept meat eaters.
We also accept flexical people. However, we question the points of classification.
Most people eat both vegetables and meat, as far as we know. They are merely omnivores. In this regard, what is the point of having a redundant category? If you go on a meatless Monday, will you become something else?
According to Health Line, “The flexitarian diet doesn’t have clear rules or recommended numbers of calories and macronutrients. In fact, it’s more of a lifestyle than a diet.”
A lifestyle with no rules or recommendations. You can have both cakes and eat them, consistent with the times. Certainly, 2025 Californian taste – i.e., marijuana maintenance – is the noble standard of living that people strive to.
Like the Flexal, what Trump has afterwards is the harsh flexibility. He wants to optimize the options. He wants profits without pain, and rewards without risk.
Do you want to discover how this all works?
Bold claim
On March 13, the S&P 500 was closed at a 5,521 provisional bottom. That day, it was over 10% from its all-time high of 6,144 on February 19th.
Since March 13th, the S&P 500 has been rebounded by 3%. The short-term importance of a 10% reduction and a 3% rebound on the S&P 500 is uncertain. Perhaps the stock could boom from here, due to Trump’s strict flexibility in trade tariffs. Something strange happened.
There is also the possibility of a purging. And if so, what is the nature of this purge?
Before the S&P 500 quickly reopens uptrends after a 30% drop, is it short and sweet, like early 2020? Or is this the beginning of a brutal bear market? Is it the kind of thing that wipes out your portfolio and blows up your investment funds?
Given the extreme rating of the S&P 500 and the damaging confusion that will damage Trump’s tariff policy, I believe a brutal bear market is ongoing. Investor patience is declining.
On Monday, Wall Street appeared Trump eager to strict flexibility, outlined in his oval office on March 21. The S&P 500 jumped 100 points. However, the boost quickly stalled and declined until Thursday.
The mix was Trump’s mid-week announcement on 25% tariffs on foreign-made cars, lightweight trucks, and certain auto parts. These new tariffs will take effect on the release date April 2nd and will be added to existing tariffs. When he signed the executive order, Trump made it Bold claim: “This will continue to drive growth you’ve never seen before.”
Do you believe this?
Trump’s tariffs It’s become wild
The White House estimates that $100 billion in annual obligations will be collected due to these auto tariffs. What is not included in the estimate, however, is money extracted from the pockets of American consumers who must pay to subsidize the American automotive industry.
Furthermore, these customs policies consider only one side of the trade equation. In 2024, the US exported $3.19 trillion in goods and services. By stricter duties on imports, American trading partners can use less dollars to buy American exports.
Therefore, the benefits of new employment created through the protectionist policies of the American automotive industry are deducted from other American industries that manufacture and export goods. These tariff policies actually boost inefficient American companies, American companies that cannot compete with international competitors, and are hurting efficient American businesses.
Chapter 11 of his book Economics of one lessonEconomist and author Henry Hazlitt includes the following insights:
“The effect of tariffs is therefore to change the structure of production in America. It changes the number of occupations, the type of occupation, and the relative size of one industry compared to another. It changes the relatively large, relatively efficient industries and relatively efficient industries.
Ultimately, Trump’s tariffs that have gone wild will have the opposite of his desired effect. Certain industries benefit, but the economy is harmed as a whole. In the long run, the decline in efficiency resulting from these tariffs reduces actual wages and wealth.
Plus, they are a huge distraction from dealing with the issues of US government spending and debt.
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From the heart,
Mn Gordon
For economic prism
Returning to the economic prism from Trump’s tariffs
