Dow takes a dump due to trade war fears

[MillCreek]

The Dow is down approximately 700 points ten minutes before closing.

[Pb]

High tarriffs hurt economies.  Too bad Trump doesn't know this.   

[Ben]

700 points in under 10 minutes =- buy. :)

[MillCreek]

In case you had doubts that a US President could have a direct impact on the economy, this shows that they can.

[Scout26]

Trump makes an off-the-cuff remark and everyone on Wall St heads to the fainting couch....

[Fly320s]

High tarriffs hurt some economies. 

Fixed.

[MikeB]

High tarriffs hurt economies.  Too bad Trump doesn't know this.   

So we should continue paying high tariffs to other countries, but not demand they lower them by threatening our own? I’m kind of on the fence about this as historically Tariffs seem to hurt. The fact is though that we are paying Tariffs sometimes by another name on the goods we sell to much of the world. Including those we supposedly have free trade with. I don’t know if what Trump is trying to do will fix any of it; but at least he is acknowledging the problem and trying to do something about it. May or may not work; but that is what is really the argument. It isn’t us just arbitrarily deciding we want Tariffs. It’s a bit of that Fair vs Free Trade thing. Free Trade never seems to be Free for the US.

[dogmush]

While this isn't doctrinally Good Libertarian, there are real world reasons to make sure we have domestic capabilities in some industries, even if it lowers the overall economic output and/or makes products cost more to consumers.

We would want to keep an eye and make sure we don't get carried away with protectionism, or screw too many consumers, but globalism isn't always great even if it's 100% symmetric.  And what we have isn't symmetric.

[Pb]

I will say, I wonder if Trump is using the threat of tariffs to try and get China to assist on disarming N. Korea of nukes.  If so, will take back what I said about him... that might be a good idea.

High tariffs are generally bad economic policy, but to try and "persuade" folks, they may work.

[Hawkmoon]

So we should continue paying high tariffs to other countries, but not demand they lower them by threatening our own? I’m kind of on the fence about this as historically Tariffs seem to hurt. The fact is though that we are paying Tariffs sometimes by another name on the goods we sell to much of the world. Including those we supposedly have free trade with. I don’t know if what Trump is trying to do will fix any of it; but at least he is acknowledging the problem and trying to do something about it. May or may not work; but that is what is really the argument. It isn’t us just arbitrarily deciding we want Tariffs. It’s a bit of that Fair vs Free Trade thing. Free Trade never seems to be Free for the US.

Agreed.

[Northwoods]

In case you had doubts that a US President could have a direct impact on the economy, this shows that they can.

He can directly affect the popularity contest of the stock market on a short term basis.  That is quite different from impacting the economy.

[Hawkmoon]

The Dow is down approximately 700 points ten minutes before closing.

OH MY GAWD!

It plummeted from a 59% increase since January 16 to only a 52% increase. WE'RE DOOMED!

https://www.statista.com/statistics/261690/monthly-performance-of-djia-index/

[K Frame]

Been a fun ride the last couple of days, that's for sure.

[Pb]

Free trade benefits the economies that adopt it, not just their trading partners.  If another country wants to screw itself by enacting high tariffs, that does not mean the USA should screw itself also.

If Trump jacks up the tariff on imported steel, that does help the tiny minority that makes steel to some extent- but it screws over everyone who else uses steel in the USA- that is, everybody. 

[DittoHead]

If Trump jacks up the tariff on imported steel, that does help the tiny minority that makes steel to some extent- but it screws over everyone who else uses steel in the USA- that is, everybody. 

It's the government picking winners and losers, and the vast majority of us are the losers in this case.

[RoadKingLarry]

While this isn't doctrinally Good Libertarian, there are real world reasons to make sure we have domestic capabilities in some industries, even if it lowers the overall economic output and/or makes products cost more to consumers.

We would want to keep an eye and make sure we don't get carried away with protectionism, or screw too many consumers, but globalism isn't always great even if it's 100% symmetric.  And what we have isn't symmetric.

Look back on what happened with industry in the USA after our entry in to WWII. Could we as a country do the same thing again?
Outsourcing the means of production of essential products to potential adversaries in a global conflict is insanity. The ability to produce steel, aluminum and other essentials is an absolute necessity. Free trade is the preferred method of business but we do not have free trade with contries like China. Most of their industry is at the least government subsidized if not outright government owned.