- In today’s CEO Daily: Diane Brady on the dissenters to Trump’s trade war
- The big story: Recession?
- The markets: A brief moment of calm.
- Analyst notes from Goldman Sachs, Convera, and EY on the Fed; and Wedbush on Apple.
- Plus: All the news and watercooler chat from Fortune.
Good morning. As I detailed last week, President Trump’s ongoing trade wars have dented the confidence of at least one block of constituents: CEOs, who are increasingly worried about the economy.
While some industries may ultimately gain from tariffs, the short-term disruption is difficult to navigate. My colleague Shawn Tully has taken a closer look at the impact that trade wars could have on the U.S. economy. First, he examined President Trump’s focus on the trade deficit and spoke with several noted economists, such as 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 points to some fundamental truths about tariffs. They are a tax borne mainly by U.S. consumers, they are likely to hurt growth and increase unemployment, they will not reduce the trade deficit or the federal budget deficit, and most important, in my view—he debunks the narrative that we’re getting fleeced by conniving, protectionist trading partners.
I’m excited to speak tomorrow with Canada’s Minister of Transport and Internal Trade Chrystia Freeland, who also recently served as deputy prime minister and finance minister. She will be joining us at Fortune’s CEO dinner in New York, where we will also chat with former Transportation Secretary Elaine Chao and former Commerce Secretary Wilbur Ross. It’s sure to be a lively discussion, with tariffs and trade certain to be on the menu.
More news below.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
This story was originally featured on Fortune.com
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