Trump’s Tariffs May Rewire Markets’ Psychology
Summary
‘Can’t put the toothpaste back in the tube’ Global markets are rebounding on Tuesday even as trade tensions show little signs of cooling. Wall Street analysts have issued a flurry of downgrades for the S&P 500, and billionaire business leaders are pushing back against Trump. (Among them is Elon Musk, the president’s biggest backer, who directly appealed to Trump to reverse course, The Washington Post reports.) All this adds to a grim mood hanging over boardrooms and trading floors, with C.E.O.s and investors telling DealBook they worry that an irreversible new era for global business is at hand. A major concern on both sides of the Atlantic: Trump’s sweeping tariffs won’t just dent global growth, but will also trigger a new era of protectionist policies that drive up inflation, sap corporate profits and chill investment — especially in the United States.