Trump backs down

Tariff-loving Trump was causing too much damage and bound to be sidelined by the Federal Government establishment. The art of the deal is dead, but the dollar is mortally wounded.

For foreign holders of dollars and its underlying financial assets, there was no doubt that Trump’s MAGA, trade policies, and his unpredictable use of the power vested in his office was not just alarming but positively frightening. Their reaction has undermined not just Trump’s and the dollar’s credibility but called in question the outlook for the US economy.

These are some of the issues arising from The Donald’s volte face: