Is the whole world hoping for a crash in the US stock market?
Robin Brooks, a senior researcher at the Brookings Institution, pointed out that the decline of the S&P 500 index may force the United States to adjust its tariff policies, and other regions around the world may take action to weaken the index. Unlike in the past, the current market crash incentive mechanism encourages other countries to hope for intensified sell-offs to raise the cost of U.S. tariff policies and increase the likelihood of the U.S. making concessions
Is the stock market crash forcing Trump to withdraw tariff policies?
Robin Brooks, a senior researcher at the Brookings Institution's Global Economy and Development program, stated that the decline of the S&P 500 is putting pressure on the United States to adjust its tariff policies. This means that other regions of the world are motivated to take further action to weaken the S&P 500.
In the past, stock market crashes typically prompted global leaders to unite to stabilize the markets. However, the incentives today are different. Other parts of the world hope that this sell-off intensifies, as it would raise the costs of U.S. tariff policies, thereby increasing the likelihood of the U.S. making concessions.
