That is not accurate. Trump is creating chaos in the business world to win a news cycle. Businesses make capital investment decisions on a multi-year horizon, and right now they don't know what the legal environment will be next month. The simplest decision to make in this situation is to postpone investments. That will hit earnings of capital goods providers by next quarter.
I will continue to remain reticent. Part of the reason Trump won is because dems continue to slap high five over events like this. Meanwhile the majority of America is thinking Trump got a slam dunk. Canada and Mexico could've really put a dent in Trump if they called his bluff. But they didn't, and the stock market bounced back, and a large swath of Americans continue to think Trump is a brilliant negotiator. So no substantial ground was gained, Trump got an out for not actually implementing substantial tariffs as campaigned, Trumpers were enriched, Elon raided the government and they probed Mexico and Canada to see just how much they'd put up with. Intelligent people continuing to realize Trump is incompetent has not got us anywhere before, real repercussions need to be triggered. We missed a great opportunity to impede a dictatorship because Mexico is so beholden to us and Canada is on the verge of tipping conservative. And businesses will continue to think, I knew he wouldn't really impose substantial tariffs, back to business as usual.
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