WSJ: Trump Is “Biggest Threat To World Economy”

April 10, 2025 Trump Corruption, Trump Lies

The Wall Street Journal editorial board writes:

President Trump says trade wars are easy to win. Investors think otherwise, and on Wednesday Mr. Trump decided maybe investors are right. Markets celebrated with a stock-market rally on hope that perhaps Mr. Trump isn’t entirely oblivious to the damage he’s causing. The rout in dollar assets reversed, at least somewhat, and the rise in the benchmark 10-year Treasury yield eased. It would be hard to find better evidence that markets believe the biggest threat to the world economy is Mr. Trump’s tariffs.

Who knows what Mr. Trump really intends, and it isn’t clear he even knows. He’s still fixated on erasing the U.S. trade deficit with nearly every individual nation, which makes no sense given the differences in economies. His 90-day pause means the tariffs could come back with a vengeance if he doesn’t like the concessions countries offer.

For businesses, this means more uncertainty, which means continuing delays in capital investment crucial for growth. Consumers will still feel pain because companies price inventory on replacement cost, not average cost, so tariffs are already hitting prices. Never bet against America, it’s said, and normally global investors don’t want to. It’s a sign of the magnitude of Mr. Trump’s tariff mistake that he’s goading them into doing so.

Read the full editorial.



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