The world’s stupidest trade war shows no signs of letting up. Even if Donald Trump further postpones some or all of his tariffs on Canadian and Mexican goods in the weeks ahead, the possibility of more sudden, unpredictable bursts of U.S. hostility is going to continue to undermine the North American economy.
Just as damaging is Mr. Trump’s willingness to torch the pillars of global stability. By throwing Ukraine to the Russian wolf, walking away from European allies and cozying up to Vladimir Putin, he is incinerating the trust that Washington has built up over generations. He is demonstrating that no country can count on the United States to be a reliable friend.
Investors should think through the implications. Many of our bedrock notions about finance are beginning to shake and groan.
Start with the notion that the U.S. is a safe place for investors. That was once obviously true: Critics might deplore the country’s social failings, but for an investor the U.S. was near paradise – a stable, open economy with reasonable, fair government policies.
