The Financial Post reports in its Tuesday, Feb. 18, edition that optimism over tax cuts and lighter regulation has shifted to anxiety about trade policies. A Financial Times dispatch to the Post reports that across the United States, businesspeople are warning a trade war could drive up costs, disrupt supply chains and hurt profits.
Ford chief executive officer Jim Farley says the effect on the automotive sector will be catastrophic. The "uncertainty and chaos" created by Mr. Trump's trade moves against the U.S.'s closest allies will end up being "an impediment to growth," says Citadel founder Ken Griffin. FT says there are indications that large swaths of Corporate America are beginning to sour on Mr. Trump, as concerns grow about the negative economic effects of his trade and immigration policies. Yale School of Management's Jeffrey Sonnenfeld says, "The initial euphoria we saw in January over a pro-business president is giving way to consternation." Some business leaders believe the pessimism is exaggerated. Goldman Sachs CEO David Solomon notes that participants remain "excited" about aspects of Mr. Trump's policies, especially the potential for a "more growth-oriented agenda" to "spur investment."
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