Economic Commentary: Tariff

 

That Word Tariff Has Been Spoken

So, we had declared that everything was in place for a fantastic economic ride. Low interest rates, a moderately expanding economy and rising stock prices. Then that word tariff was uttered.  It took one word to put a bump in the road of our economy. As soon as the word was spoken (or Tweeted) the markets immediately showed their dismay.

This word tariff had been bandied about before as part of the many trade discussions which have taken place in the past few years. Sometimes the word just turns out just to be part of negotiating tactics. Or, the tariffs implemented are not as extensive as they are threatened. In these cases, the markets have quieted down, and the economy has moved along its merry way. It has been about two weeks since the word was presented, and in this case the drama has continued.

However, the initial reaction we have witnessed reminds us that it only takes one little or big thing to upset the apple cart. Natural disasters, political events, international tensions, and more, have the ability to put a charge into the economy and the markets.  Only time will tell.

Source: Origination pro

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