Tariffs Then and Now: Is Trump Repeating Nixon's 1971 Shock! Playbook.

In 1971, Nixon stunned markets with wage controls, tariffs, and ending the gold standard. This is known as The ‘Nixon Shock’ .
What was the result? It caused stagflation and a dollar crisis.

Today, Trump’s ‘Liberation Day’ tariffs mirror this playbook.

What are the key Parallels between Nixon's shock and Trump’s ‘Liberation Day’ tariffs:

Tariffs as Weapons:
Nixon: 10% import tax to pressure trade partners.

Trump: 25% tariffs on allies like Canada/Mexico and 20% on China.

Market Chaos:
1971: Short-term market rally, but long-term inflation and volatility.

2025: S&P 500 down 7%, Nasdaq 100 down 10% since Trump’s policies began.

Global Backlash:
Both eras saw retaliatory tariffs and eroded trust in U.S. leadership.

Critical Difference:
Nixon’s policies aimed to stabilize the dollar; Trump’s focus on reshoring jobs risks deeper global fragmentation.
Goldman Sachs warns Trump’s tariffs could slash S&P 500 earnings by 2-3%.

“History doesn’t repeat, but it rhymes. Will Trump’s tariffs trigger a Nixon-style reckoning? Subscribe to Stay tuned.”

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