Tariffs: Trump Card or Bluff?

President Trump campaigned on tariffs, and in his first two weeks he came out swinging, announcing new tariffs on Mexico, Canada, and China. Although tariffs on Mexico and Canada were quickly deferred, they are clearly a key part of Trump’s playbook. The will-he, won’t-he nature of Trump’s trade policies creates a challenging environment for businesses and markets, with the rules of engagement unclear and subject to rapid change. Uncertainty and volatility are likely to remain features of the Trump presidency.