President Trump is operating in an economic reality of his own creation that has left him both increasingly emboldened and isolated as he escalates trade hostilities over the objections of key aides and allies.
The outlook threatens to plunge an otherwise expanding economy further into a fight that is already rattling supply chains around the globe, spooking investors, delaying investment plans and prompting layoffs. And the president is set to take things from bad to worse this week.
With his threat of new tariffs on auto imports looming, Trump will huddle Wednesday in Washington with European Commission President Jean-Claude Juncker in what Europeans are calling a last-minute bid to ramp down transatlantic tensions. Yet Trump has all but shattered hope for a breakthrough, last week accusing the European Union of currency manipulation and lashing out after they announced a $5 billion antitrust fine on Google, tweeting, “They truly have taken advantage of the U.S., but not for long!”
Trump continues to insist all is well at home. He said Friday he is playing with “the bank’s money” in the trade conflagration, thanks to a runup in the stock market under his watch. He is talking up second-quarter GDP numbers, due Friday, that he believes will touch 4.8 percent. On Twitter over the past few days, the president has blamed the Fed, foreign currency manipulation, and a “downward trend” in agriculture for economic speed bumps. And he continues to believe his trade offensive provides a winning issue for his party in the midterms.
The world beyond his blinders looks very different.
more@Washington post
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