Trade Wars Are a Possibility
- Trade Wars are a possibility.
- The U.S. imposed tariffs on aluminum and steel imports.
- Tariffs have caused global markets to react negatively.
- Trade policy should be treated as game theory – the objective is to optimize the total for all participants. Free trade does just that. Tariffs do not.
- We hope the tariffs will be reversed.
- If we see retaliation from other countries, we can expect a decline in trade, slowdown in growth, and a negative reaction from stock markets.
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