After Trump nicknames himself "Tariff Man" the stock market plunges
Over the weekend it seemed like a solid trade agreement - putting the trade war on hold for 90 days - had been made between the United States and China. And then Trump couldn't resist Twitter, where, over a few posts, he warned that if the deal didn't happen, he was a "Tariff Man." Following his toxic tweets, the Dow Jones industrial fell 705 points, or nearly 3%. The Nasdaq fell 3.1%.
The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina. Bob Lighthizer will be working closely with Steve Mnuchin, Larry Kudlow, Wilbur Ross and Peter Navarro.....
- Donald J. Trump (@realDonaldTrump) December 4, 2018
......on seeing whether or not a REAL deal with China is actually possible. If it is, we will get it done. China is supposed to start buying Agricultural product and more immediately. President Xi and I want this deal to happen, and it probably will. But if not remember,......
- Donald J. Trump (@realDonaldTrump) December 4, 2018
....I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN
- Donald J. Trump (@realDonaldTrump) December 4, 2018
According to The New York Times:
Stocks fell on Tuesday, after President Trump sowed confusion over the status of a truce in the trade war between the United States and China, while the bond market, often considered a safe haven for investors, sent a stark warning about expectations for an economic slowdown.
The S&P 500 dropped more than 3 percent, with economically sensitive financial and transportation stocks sliding.
And via Business Insider:
While stocks had already given up a significant amount of their post-G20 gains, the tweets appeared to confirm investors fear that the Trump deal may not have been as solid as it first seemed and trade-war dangers still loomed.
Image: By Gage Skidmore, CC BY-SA 2.0, Link