[SEKYFAN]

https://www.msn.com/en-us/money/markets/...62f5&ei=22

Trump crying wolf over tariffs has already convinced Wall Street that threats will be short-lived.

"President Trump again retreated from imposing aggressive taxes on U.S. consumers," UBS chief economist Paul Donovan wrote in a Tuesday morning note seen by Fortune. "Although taxes on goods from Mexico and Canada are in theory delayed for a month, after three retreats in a row markets are unlikely to take that threat seriously."

But that doesn't mean there has been no impact, the UBS economist notes
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"The long-term consequences remain. Foreign countries have less reason to trust that the U.S. will honor trade treaties, reducing the incentive to make concessions," Donovan continues. "U.S. consumers may have had a fright over trade taxes, changing their behavior."


an investment company where Siegel is senior economist—the expert writes: "Growth remains steady, with jobless claims at a healthy 207,000 and GDP tracking between 2.5% and 3% for the first quarter. This isn’t an environment that screams urgent rate cuts, particularly when core inflation metrics remain on target."

Siegel adds, "Trump’s new tariffs are not smart either economically or politically…the political impact is likely to be very negative for Trump’s program, as the rise in prices (gasoline and some food items) will have high visibility in the mainstream media and put pressure on some legislators."