- In at this time’s CEO Every day: Diane Brady on the dissenters to Trump’s commerce battle
- The massive story: Recession?
- The markets: A quick second of calm.
- Analyst notes from Goldman Sachs, Convera, and EY on the Fed; and Wedbush on Apple.
- Plus: All of the information and watercooler chat from Fortune.
Good morning. As I detailed final week, President Trump’s ongoing commerce wars have dented the arrogance of no less than one block of constituents: CEOs, who’re more and more nervous concerning the economic system.
Whereas some industries could finally achieve from tariffs, the short-term disruption is troublesome to navigate. My colleague Shawn Tully has taken a better have a look at the impression that commerce wars may have on the U.S. economic system. First, he examined President Trump’s concentrate on the commerce deficit and spoke with a number of famous economists, comparable to Stanford’s John Cochrane, who argues that “it’s not clear why a trade deficit’s a problem in the first place, because nations are reinvesting the dollars we send them right back in the U.S.”
Second, Tully factors to some elementary truths about tariffs. They’re a tax borne primarily by U.S. customers, they’re more likely to damage progress and enhance unemployment, they won’t scale back the commerce deficit or the federal price range deficit, and most vital, in my opinion—he debunks the narrative that we’re getting fleeced by conniving, protectionist buying and selling companions.
I’m excited to talk tomorrow with Canada’s Minister of Transport and Inside Commerce Chrystia Freeland, who additionally lately served as deputy prime minister and finance minister. She might be becoming a member of us at Fortune’s CEO dinner in New York, the place we will even chat with former Transportation Secretary Elaine Chao and former Commerce Secretary Wilbur Ross. It’s positive to be a full of life dialogue, with tariffs and commerce sure to be on the menu.
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Contact CEO Every day by way of Diane Brady at diane.brady@fortune.com
This story was initially featured on Fortune.com
