here are some ramifications of the trade war begun by hurricane trump that you may not have thought about;


If you weren’t worried before, worry now.
It hasn’t been China that has been the source of sudden escalation; nor Iran; nor North Korea; nor Turkey, who admittedly gave it a good go in announcing they may install Russian S-400 anti-aircraft missiles in the area of the Mediterranean they are looking for energy in despite protests from the EU’s Cyprus it’s their naval territory; nor even Italy, where Deputy PM Salvini is threatening new elections that would very likely strengthen his hand further has he prepares for battle with Brussels. No, it was Mexico. (Or rather US President Trump, which is less of a surprise.)
Don’t get me wrong. Up until this morning I was going to say that it was China you should worry about the most as the May manufacturing PMI slumped to 49.4, and because June was already looking ugly for CNY (as Bloomberg notes today). Moreover, if you listen to recent statements from the White House, and read tweets from a few key US market participants, you could make a strong argument there will soon be US sanctions placed on China over its alleged concentration camps in Xinjiang. (Which readers who have spoken to me personally may recall I have long been suggesting would be a logical--and powerfully disruptive--‘moral’ weapon for the US to use next.) Yet today we are worried most about Mexico because Trump has just tweeted:

“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,....at which time the Tariffs will be removed. Details from the White House to follow.”

And those details state the tariffs will rise to 10% by 1 July, 15% by 1 August, 20% by 1 September, and 25% by 1 October, where they will remain permanently if that illegal immigration via-Mexico doesn’t stop. Despite some writers no doubt leaping to say this is a Mexican Stand Off, it isn’t: it’s a Mexican Sit On, as in the US is sitting on Mexico with its full, rotund body weight......https://www.zerohedge.com/news/2019-05-31/if-you-werent-worried-worry-now