Wall Street Asks Whether Trump’s Tariff Threat Is a Tactic or Not
- Goldman, Citi offer cautious optimism on U.S.-China deal
- Cowen, Raymond James, MUFG use words like derailed, disaster
This article is for subscribers only.
Policy analysts are offering a variety of interpretations of President Trump’s latest tariff threat. Some, like Goldman and Citi, are optimistic a U.S.-China deal can still be reached. Others, including Raymond James and Cowen, are more cautious, warning the process may have been derailed, and point to rising global risks.
Investors weren’t happy about the news, with the S&P 500 dropping by as much as 1.6 percent in early Monday trading, the most since March 22. Tech and machinery companies were hard hit, with Alibaba Group, Apple Inc., Boeing Co. and Caterpillar Inc. all sliding. Bellwether banks such as Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. were all falling 1.5 percent or more.