{"id":34703,"date":"2018-06-03T10:50:11","date_gmt":"2018-06-03T15:50:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34703"},"modified":"2018-06-03T10:50:11","modified_gmt":"2018-06-03T15:50:11","slug":"goldman-if-trump-wants-to-win-a-trade-war-the-market-has-to-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34703","title":{"rendered":"Goldman: If Trump Wants To Win A Trade War, The Market Has To Crash"},"content":{"rendered":"
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Goldman: If Trump Wants To Win A Trade War, The Market Has To Crash<\/span><\/a><\/h3>\n<\/div>\n
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Now that the Trump global trade war ceasefire is over with both allies (Canada, EU, Mexico<\/a>) and adversaries (China<\/a>), the hot takes are coming in, and none more exhaustive than a note by Goldman Sachs released overnight, in which economist Alec Phillips writes that less than two weeks after Steve Mnuchin declared that the \u201ctrade war is on hold,” a statement which China trade hawk Peter Navarro subsequently blasted as inaccurate<\/a>, Trump’s policy has shifted substantially and “following trade announcements over the last few days, the trade war does not appear to be \u201con hold\u201d but simply “on”, leaving even longtime observers of trade policy confused about the direction from here.”<\/strong><\/p>\n

So how should one try to make sense of Trump’s unique, confusing negotiating style? According to Goldman, at the start of the Trump Administration, \u201creciprocity\u201d was the watchword guiding trade policy.<\/p>\n

Since taking office the President has cited many examples of \u201cunfair\u201d trade policies where foreign tariffs are higher than US tariffs on the same product.<\/p><\/blockquote>\n

Trump made as much clear on Saturday when he tweeted that “The United States must, at long last, be treated fairly on Trade. If we charge a country ZERO to sell their goods, and they charge us 25, 50 or even 100 percent to sell ours, it is UNFAIR and can no longer be tolerated. That is not Free or Fair Trade, it is Stupid Trade!”<\/p>\n

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The United States must, at long last, be treated fairly on Trade. If we charge a country ZERO to sell their goods, and they charge us 25, 50 or even 100 percent to sell ours, it is UNFAIR and can no longer be tolerated. That is not Free or Fair Trade, it is Stupid Trade!<\/p>\n