Analysis: Trump’s Trade War Has Cost The U.S. Stock Market $5T In Lost Value

Gage Skidmore/CC BY-SA 2.0/Flickr

According to Deutsche Bank, trade wars with China and Mexico are costing the United States stock market $5 trillion.

CNBC reports that President Trump’s escalating trade battles with China and Mexico have cost the United States stock market $5 trillion and counting in lost returns according to Deutsche Bank.

While stock price appreciation would have normally occurred at an annual rate of 12.5% as part of the economic recovery since 2009, the trade wars have prevented US equity returns from the stock market. This loss of returns amounts to $5 trillion in the past 17 months.

President Trump’s hiking of tariffs on $200 billion worth of Chinese products, China’s subsequent retaliation of tariffs on $60 billion worth of imports, and Trump’s imposition of a 5% tariff on all Mexican products has exacerbated the financial situation. The continuation of these trade wars could hold implications for American economic growth in the future.

Read the rest of the story here.

Comments (1)
No. 1-1

the same bank that Trump uses? hmmm they may be using this to bet against the Market and make more money...