Source: Washington Post
by Megan McArdle
“Is President Donald Trump blinking? I certainly hope so. Because what he’s touched off is not just a trade war; it risks turning into a run on the United States of America. Financial markets can be unpredictable, but relationships tend to hold. For example, when you impose tariffs, your currency should strengthen, because foreigners still need to buy your currency to purchase your exports, while you’re buying less of their currency to purchase their exports. (At least, until they impose retaliatory tariffs that crush your exports.)” (04/26/25)