Trump crying wolf over tariffs has already convinced Wall Street that threats will be short-lived

President Trump has shown his hand when it comes to tariff policy: It’s a threat he’s willing to make and rescind—as long as he gets part of what he wants.

And while the tactic may prove a costly game of chicken for the U.S. economy, it does mean Wall Street is convinced that a significant amount of the rhetoric coming out of the Oval Office will be short lived at best.

To recap, over the weekend President Trump confirmed a tariff of 25% would be placed on imports coming from Mexico and Canada. China would also be facing a 10% import tariff on its goods.

Then, on Feb. 3 the tariffs on Mexico and Canada were pushed back. The Oval Office said both nations had taken the immediate steps needed to “to alleviate the illegal migration and illicit drug crisis” and thus, avoid tariffs.

Source: FORTUNE