Markets
The first two days of the Trump administration as expected brought an avalanche of executive orders and new initiatives to mark a seizure wit the policy from his predecessor. However, at least from a market point of view, the start of the new Trump era didn’t bring an outright moment of disruption yet. For now, the new administration only releases it intentions on a step by step basis. This is particularly the case for way the new government will use trade tariffs as a policy instrument. For now, markets apparently feel comfortable with this approach, even as Trump keeps the pressure on his trading partners. In this respect, he yesterday suggested that 10% tariffs might be imposed on China starting as early as on February 1. This action won’t be based on issues of trade policy, but as a reprieve from the country sending drugs to the US. The debate on trade will follow…
