Stronger Growth Seen For Africa as It Weathers Tariff Shock
African economic growth will accelerate this year, thanks to public investment in agriculture and energy infrastructure seen helping shield if from the global trade war.
That's according to the African Development Bank, which sees the region expanding 3.9% this year, up from 3.3% in 2024, and advancing by 4% in 2026.
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Forbes
2 hours ago
- Forbes
Boeing Stock Surges 54% On Trump Tariff Chaos: The DJ TACO Trade
On April 2, 2025—a date President Trump proclaimed "Liberation Day"—the administration announced the most sweeping tariff hike since the Smoot-Hawley Tariff Act, the 1930 law best remembered for triggering a global trade war and deepening the Great Depression. On April 4, Boeing's stock price hit $136.59. It closed Friday, June 6th at $210.86, a whopping 54% return in just two months. What has become known as the TACO trade—TACO stands for "Trump Always Chickens Out"—has earned the president the Wall Street nickname "DJ Taco." When Trump assumed the presidency for the second time, investors expected unprecedented investment opportunities driven by smaller government, balanced budgets, lower taxes, and fewer regulations. Most Republicans and even Democrats assumed as much. But DJ Taco's on-again, off-again tariff policies have become the primary market driver. The sentence "tariffs wreak havoc in markets" is widely understood by everyone on Wall Street. However, DJ Taco's approach makes 1930s communist central planning look like amateur hour, with random, nonsensical decisions creating unexpected opportunities for savvy investors willing to navigate the chaos. Most agree that having a more thoughtful approach to trade, especially with China, makes sense. But for most of the rest of the world, Trump's tariff strategy is more than head-scratching—it's bewildering. Take Boeing's relationships with Japan and Italy, two critical allies and aerospace partners. Boeing's CEO recently stated that tariffs are costing the company $500 million this year alone, yet the stock has soared on the volatility and uncertainty that defines the TACO trade phenomenon. Several fundamental drivers are powering Boeing's remarkable recovery, making it the ultimate beneficiary of the TACO trade dynamic. The Boeing 737 MAX backlog and production capacity support a significant ramp-up, with demand and infrastructure aligned for higher output and revenue growth. This positions the company perfectly to capitalize on both the chaos and eventual stabilization of trade policies. Short-term revenue and profit growth hinge on lifting the FAA's production cap and stabilizing at higher rates, with the potential for $400 billion in revenues by 2034. While an accelerated production increase offers substantial upside, Boeing must prioritize operational stability to avoid jeopardizing long-term prospects and balance sheet improvement. Despite near-term investor impatience, sustainable growth and production reliability remain key—pushing too fast risks undermining Boeing's recovery and future opportunities. The company is gaining momentum with higher production rates and strong net order value, outpacing Airbus in wide-body orders and overall order value. This competitive advantage becomes even more pronounced in the current trade environment, where supply chain disruptions and tariff uncertainties favor established American manufacturers with domestic production capabilities. Airbus leads in single-aisle deliveries but faces significant supply chain constraints, limiting its ability to ramp up production further. Both manufacturers are benefiting from robust demand, reflected in large backlogs, but Boeing's recovery and inventory deliveries give it a near-term edge that the TACO trade amplifies. The European manufacturer's supply chain vulnerabilities become more pronounced when trade policies shift unpredictably. If Airbus resolves its supply chain issues, it could quickly regain delivery share, making 2025 a pivotal year for both companies' production outlooks. However, the current tariff environment creates additional headwinds for international competitors while potentially benefiting domestic producers like Boeing. The TACO trade represents more than just Trump's tendency to reverse course on harsh rhetoric—it embodies the market's adaptation to policy whiplash. Investors have learned to position themselves for both the initial shock of aggressive announcements and the subsequent backpedaling that typically follows. Boeing exemplifies this dynamic perfectly. The company benefits from being perceived as both a victim of trade wars (driving sympathy buying) and a beneficiary of America First policies (attracting nationalist investment). When tariffs are announced, Boeing initially suffers due to retaliation concerns and supply chain disruptions. But when Trump inevitably "chickens out" or moderates his position, Boeing surges on relief rallies and renewed optimism about international partnerships. The aerospace giant's stock performance reflects this pattern: initial volatility followed by sustained gains as markets recognize the underlying strength of the business model and the temporary nature of most trade disruptions. Smart investors have learned to buy Boeing on tariff announcements and hold through the eventual policy reversals. DJ Taco's trade policies create a unique investment environment where companies with strong fundamentals but international exposure become prime TACO trade candidates. Boeing's 54% return in two months demonstrates how market participants can profit from policy inconsistency when they understand the underlying pattern. The key to successful TACO trading lies in identifying companies that will ultimately benefit from policy reversals while possessing the financial strength to weather initial disruptions. Boeing, with its essential role in American aerospace dominance and global commercial aviation, represents the perfect storm of characteristics that make TACO trades profitable. As we move forward, expect continued volatility around trade announcements, but also recognize that the TACO trade pattern creates predictable opportunities for investors willing to embrace the chaos of DJ Taco's policy-making style. Note: The author owns securities in some of the companies mentioned in this article.
Bloomberg
2 hours ago
- Bloomberg
West Coast Ports Are Feeling the Pain of Tariff Theater
On a normal day in June, about a dozen ships, most newly arrived from Asia, would be docked at the Port of Los Angeles. Workers would be busy unloading cargo, directing the containers to trucks, trains and planes bound for businesses and warehouses across the US. But no day has been normal since the start of President Donald Trump's roller coaster of a trade war. 'You're seeing what's been noticeable to us over the last several weeks,' said Gene Seroka, executive director of the Port of Los Angeles, on Wednesday, nodding toward the sprawling San Pedro Bay and the equally struggling Port of Long Beach in the distance. 'During the past seven days, we've averaged about five ships. Job orders for our dock workers … are down nearly 50%.'
Yahoo
3 hours ago
- Yahoo
Vietnam Inks Deals to Buy $3 Billion US Products Before Talks
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World ICE Moves to DNA-Test Families Targeted for Deportation with New Contract US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Trump Said He Fired the National Portrait Gallery Director. She's Still There. Vietnamese businesses have signed 20 agreements worth about $3 billion to import more US agricultural products ahead of the third round of official negotiations set to take place next week. Memoranda of understanding were signed during talks involving Minister of Agriculture and Environment Do Duc Duy in Iowa, Ohio, Maryland and Washington from June 2-6, the ministry said in a statement on Saturday. 'These agreements highlight the strong commitment and goodwill of Vietnam's business community and government to promote balanced trade with the US, and to encourage the Trump administration to reconsider high reciprocal tariffs on Vietnamese goods,' it said. Vietnam has engaged in weeks of intense diplomacy with the US — the largest export market of the trade-reliant country — as it seeks to avert a threatened 46% tariff, which was later wound back to 10% for 90 days to allow time for talks. The reference to 'goodwill' echoes language used earlier this week, when the Southeast Asian nation sent a written reply to US trade requests after the Trump administration vowed to keep pressuring the country to reduce its role in China supply chains. Vietnam cited progress after the second round of trade talks last month but said that outstanding issues remain. It's taken steps to address some US concerns, such as stepping up a crackdown on trade fraud and promising to buy US agricultural products. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P.
