In an interview with CNBC at the World Economic Forum in Davos, Switzerland, President Trump said he'd walked back tariffs on eight European countries. He's been threatening tariffs recently on countries that opposed his pursuit of Greenland, but has backtracked on some of those because he says he has the concept of a deal.
This caused the markets to rise tremendously in response to the news from Switzerland. The Dow Jones, NASDAQ, and S&P 500 all rallied big on Thursday, recovering from dips earlier in the week. The circumstance is still very volatile, and we'll have to wait and see what happens with Greenland and the effects it will have on the economy.
https://www.cnbc.com/2026/01/22/trump-tariffs-greenland-europe-deal-taco-trade-sell-america.html
This is intresting because I also believe that this can be very volatile and one small change could send that market down again. Definitely something to keep an eye on as we wait to see what Trump has to say about the tariifs and Greenland situation.
ReplyDeleteI have spent a lot of time studying the powers of the president in the Constitution. But this post makes me realize how much power he has that is not just limited to his executive powers. The economy is very impacted by predictions of the future. The president can suggest tariffs and then change his mind. Nothing changes in reality but because of people's predictions the economy changes! If a president is able to effectively use this public impact, he can have far more influence than his executive powers strictly afford him.
ReplyDeleteIt’s fascinating to consider how powerful the threat of tariffs can be in shaping the economy. Simply knowing that tariffs might be imposed gives someone significant influence over markets, businesses, and economic decisions.
ReplyDeleteIt's interesting how quickly markets reacted once the tariff threats were eased. This shows how sensitive investors are to trade policy and uncertainty right now. This will be worth watching how these shifting decisions continue to move markets.
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