Risks Abound If Trump Ties Tariffs to a Balance-of-Payments Crisis
Countries tend to avoid declaring they're facing balance-of-payments problems, for good reason. They unnerve markets. They remind people of policy failures in places like Argentina, Greece or Thailand. They conjure up images of IMF technocrats flying in to enforce austerity regimes.
But after a US court last week ruled the bulk of his global tariffs illegal, that may be the step President Donald Trump is forced to contemplate if he wants to keep his import taxes. Which raises all sorts of interesting questions for financial markets.
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