Quote:
Originally Posted by JPhillips
Navarro says the tariffs on April 6 are going to amount to 600 billion a year. That's easily the biggest peacetime tax hike in terms of percentage of GDP.
Now they won't be able to get 600 billion because markets will be fucked sideways, but the initial shock is going to be something. If this really is the plan the markets will tank this week.
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Will be a fascinating week. Still seems like most of Wall Street thinks he's bluffing and he does typically puss out at the end. But $600 billion in new taxes is massive for consumers and would have to be like 20%-25% on everything being imported (assuming imports don't change).
Not sure how the markets don't drop 10-20% if he follows through. Basically kills any hope of a rate cut later in the year and brings in some nasty stagflation.