"Totally unpredictable, totally chaotic"

The Trump administration has started a trade war with most of the world's economies.

Hard to decipher in terms of long-term intent and execution, the recent 90-day pause on higher-band tariffs with the exception of China has only added to the torrent of confusion.

As the world's largest economy, with a huge trade deficit, the US may yet receive a global and cumulative negative impact on its economy that will not please US voters and the business community.

London Business School's Professor Richard Portes was interviewed on France 24 , describing the actions of the past nine days as "totally unpredictable, totally chaotic".

"We are learning that Trump will back down when faced with forces that he cannot control. It was the bond market vigilantes that presented him with the first obstacle, and Trump was concerned (or those who advise him were concerned) that the bond market was on the verge of a total crisis, which could bring a financial crisis for not just the US but globally."

Turning to the 47th president's adversarial approach to China, Professor Portes remarked, "Whether he will back down from Xi Jinping is another question." He added, "Although the so-called reciprocal tariffs have been delayed by 90-days the remaining levels of tariffs are still very high. This will have a huge impact on the US economy and on inflation abroad."

Would there be a sense of relief given the 'tariff pause'? "No, as I say, the US President is unpredictable and we may soon find ourselves back to square one. Also, the turmoil in the bond markets has not been banished."

For the full interview, click here and here