Boy, That Escalated Quickly

From bravado to backpedal — the tariff chaos continues.

Boy, that escalated quickly.
It started with Trump’s “beautiful” tariffs. Then came the “reciprocal” math that didn’t add up.
Now the blowback is real.

📌 China has announced tough retaliatory tariffs and vowed to “FIGHT TILL THE END.”
That does not sound like a happy ending.
JD laughed off the threat, calling for the “peasants” to enjoy their U.S. Treasury bonds.

📌 The European Union (EU) has also hit back at the U.S., approving the first round of tariffs:

“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial,” the European Commission said.

To which Donald Trump reportedly said: “No pain, no gain.”

Countries around the world are responding in kind. The stock markets have been in turmoil.

The impact of Trump’s tariffs cannot come as a surprise.
You don’t launch a global economic grenade and expect a group hug.

The President has shown no sign of wavering from his tariffs play, doubling and tripling the stakes while others raise theirs. Easy to do when you're playing with the house’s money. Trump can’t lose—only the American people can.

He has urged U.S. companies to move operations back to the homeland.

The red carpet is waiting. But it’s the companies who’ll have to make the investment, build new factories, and find skilled workers in an already tight labor market.

And prices will stay the same?

Much like the U.S. government’s botched exit from Afghanistan, companies would likely be leaving behind factories, employees, and technology. By the time production is repatriated, competitors abroad—especially in China—will be in overdrive. Even with tariffs, they’ll be outcompeting the U.S. with ease.

Behind closed doors, major U.S. companies have explained to the Trump team that moving operations back won’t work unless America scraps environmental protections, labor rights, child labor laws, and the minimum wage.

Trump’s team is now running the numbers.

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Back Pedal

In the last few minutes, the President announced on Truth Social, his own social media platform, a 90-day pause on tariffs for some countries.
Except China. They get more tariffs.
“For being a very naughty country.”

It’s emblematic of the seat-of-the-pants decision making we’ve come to expect from Trump and his administration.
Clarity? Not so much.

But markets have shot higher, on hopes that the pin can be put back in the grenade.
The bounce is likely less about investor joy—and more about short covering.
(That’s when traders who bet against the market have to buy back their shares, quickly.)

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In the bigger picture, Trump has once again upped the ante with China.
That “fight to the end” is what we should all be worried about.
This story continues…

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The Bullshark Report