US500US100 You know what's so dangerous about all of this is that if you look retrospectively tariffs like these literally never work as intended. The steel tariffs imposed by trump in 2018 didn't save that industry as a matter of fact they saw a contraction since then so the trump folks squawking about short term pain for long term gain and cheerleading the biggest unilateral regressive tax hike on American consumers in modern history are full of it. We are going to see almost no gain even in the long term because the path of least resistance dictates trade flows not unilateral mandates. What's actually going to happen is the US getting stuck with massive fallout from destroying our international relationships in such a severe way that even our allies are starting to second guess a US led world order. Anti American sentiment is rising globally which will fuel boycotts of American exports so the trade deficit is also not going anywhere. Also this thing where the richest country most powerful country in the world plays both the bully and victim card is unsustainable.
US100 We were getting fairly close to a circuit breaker which would've triggered actual panic selling. Believe it or not this isn't panic just yet it's still fairly orderly institutional deleveraging as retail buys the dip. Decade high retail inflows balanced by 15 year high net short position of hedge funds is not panic it's positioning though the vix is suggesting we are close to breaking something.