Trump’s two-front trade war triggers alarms

Excerpt from Politico

05/31/2019 02:30 PM EDT

President Donald Trump’s decision to open a second front in his trade war sent tremors through global markets, unnerved corporate America and spurred economists to raise new warnings about the potential for a sharp economic slowdown just as the 2020 presidential contest heats up.

Trump’s surprise Thursday night threat to impose tariffs — beginning at 5 percent and potentially rising as high as 25 percent on Mexican exports to the United States — also threatened to raise consumer prices on everything from avocados to blue jeans to automobiles.

“This is a colossal blunder,” said David Kotok, chief investment officer at Cumberland Advisors. He said the advice of Peter Navarro, one of Trump’s top trade advisers who favors liberal use of tariffs, “is wrongheaded and sinking his president.”

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