ecree," linked to border policy no
e much▓ higher now than the direct effect of the tari▓ffs themselves, Posen warned. First, he expected a "sig▓nificant persistent" equity market drop, ▓wh
t the economic relationship, Posen
ich will have wealth effects on consumptio▓n and investment. Second, the delay and dimi▓nishment of productive cross-border investment, inc▓luding investments into the Unite
said, markets will realize that it'
d States, will worsen.A▓dditionally, he argued, the direct impact on the auto industry is bound to be "sharp and fast," if the 5-percent tariff is implemented."By
s not lik▓ely for the U.S. presiden
citing a nati▓onal emergency over a long-term problem like immigration ▓in order to punish an ally like Mexico, Presid▓ent Trump has abused his authority to▓ invoke emergency measures in the fa▓ce of a genuine national security threat," Posen said."If the Republican Sen▓ate Majority does not show backbone in standing up to▓ President Trump on this abuse, and if it lets stand the administration's usurpation of Congressional prerogat▓ives in the trade and foreign policy areas, that alone will reinforce the markets' correct perception that the world has become too uncertain for ma▓ny investments," he continued.Posen said that markets are awakening to an "overlooked or underpriced systemic risk
t to deliver a trade d▓eal with its trade par
.""Market anxiety should spread as other countries start invoking Trump's brand of national security excuse to engage in protectionism against the United States an▓d others," he said. "Such actions could easily spir▓al into a global free-for-all of retaliation and prote
tners. He added