So, Donald Trump’s tariffs will not produce a meltdown after all. For two reasons: the American economy is in rather good shape, and Trump has begun a series of pragmatic adjustments to the “no adjustment” policy that accompanied the announcement of his eye-watering tariff rates.
Start with the state of the economy. Americans are richer than ever: household wealth is at record levels, although much is concentrated in relatively few hands. Total retail sales increased 1.4 per cent in March, helped by car buyers beating the tariffs. American Express reported that its first-quarter revenue was up 8 per cent over last year’s, and that its customers are “eating out and enjoying life”. Brian Moynihan, Bank of America’s chief executive, said “the consumer continues to be
