Denizen
Gold Member
- Oct 23, 2018
- 4,837
- 1,062
- 190
- Banned
- #1
Perhaps a new branch of economics has evolved since the appearance of Trump. Stable genius economics where the objective is bankruptcy.
Exports are down, imports are up, Soybean sales down 97%.
Roll the dice again stable genius Donald Trump.
Trump Economy Had Lousy Week As Dow Jones Dives, Trump Tariffs Bite
Exports are down, imports are up, Soybean sales down 97%.
Roll the dice again stable genius Donald Trump.
Trump Economy Had Lousy Week As Dow Jones Dives, Trump Tariffs Bite
The Trump Economy's Lousy Week: Dow Dives, Tariffs Bite, CapEx Slows
Trumponomics just had its worst week. The sinking Dow Jones, S&P 500 and Nasdaq composite were hardly the only red flags. While GDP is growing briskly and wage growth has accelerated — damage from Trump tariffs and slowing business investment are beginning to raise a few doubts about the sustainability of the Trump boom.
Central to Trumponomics is the notion that the U.S. can have its cake and eat it too, that there aren't trade-offs in economic policy. In other words, it's possible to put the fiscal pedal to the metal without worrying about higher interest rates and a higher dollar. Trade wars are good, easy to win and won't impede a U.S. investment boom and a roaring bull market.
The news this week offers some reason to wonder whether the heyday of Trumponomics might be winding down and a string of negative economic surprises are around the corner.
Winning The Trade War?
Goods exports slid 7% in the third quarter, the biggest drop since early 2015, Commerce Data show. That probably reflects at least some payback from strong export growth in the second quarter, when U.S. exporters sought to get ahead of the China trade war and its tit-for-tat tariffs that started hitting in July.
Yet it also may reflect lost business. The USDA reported that U.S. soybean exports to China over the past seven weeks tumbled 97% vs. a year ago. China's retaliatory tariffs on soybeans help explain the steep drop, though higher inventories in China also are a factor.
Meanwhile, motor vehicle exports to China plunged 56% from a year ago in August, and Beijing's tariff hike on U.S. vehicle imports likely bear some of the blame. BMW has reportedly moved some China-bound SUV manufacturing from South Carolina to avoid Chinese tariffs. This week, Daimler (DDAIF) said it's looking at moving some SUV manufacturing from Alabama for the same reason, though no decisions have been made.
Conversely, goods imports surged 10.3% in Q3, likely related to getting ahead of the Trump tariffs on $200 billion in Chinese imports that took effect in late September. Those China tariffs are set to escalate to 25% on Jan. 1 if there's no deal before then.