President Trump Donald John TrumpMexican President on Trump Immigration Rates: "America First is a Mistake" Bennet warns of "race to judgment" on Trump's charge Grassley beats Trump tariffs on Mexico: "An abuse of the presidential election" MORE 's multi-front trade war has cost the stock market $ 5 trillion over the past 1
"While other factors also played a role, the trade war has been the key to preventing a recovery in global growth and keeping the US stock spectrum bound. Foregone's US return from price increases for 17 months is worth $ 5 trillion," said Binky Chadha, the bank's chief strategist, in a Friday concert to clients from Marketwatch.
Chadha added that the cost was similar to the European financial crisis in 2011-2012 and the financial shock after the collapse of the crude oil prices in 2014-2016.
"In terms of duration, the current is The episode remains 5-6 months short of the two episodes. But it is noteworthy that the current episode has occurred in a context of significantly stronger US macro and earnings growth and lower unemployment, Chadha says, adding that the money back on the table is already worth 12 years in the US bilateral trade deficit with China.
The White House operates a majority trade war, where most of its tariffs are charged to China.
Trump administration raised tariffs from 10 percent to 25 percent of $ 200 billion of Chinese imports. Beijing by targeting USD 60 billion of US agricultural exports and stopping US soybean purchases. The president also announced on Thursday he intends to take a 5 percent tariff on all Mexican imports unless Mexico City is hitting its efforts to curb illegal border crossings to us
markets were roiled late this week in light of news on possible tariffs on Mexico, with the Dow Jones Industrial Average futures releasing nearly 255 points on Friday morning.