Today feels like a turning point - the Western alliance and the global trading system are coming under the same intense strain that Trump has created for our domestic institutions. Will Congressional Rs continue to stand by, paralyzed by fears of their base?
Not totally clear: they rolled him on Russia sanctions early and Corker is trying to make a move on trade (so far unsuccessfully) google.com/amp/s/www.poli…
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Markets have seemingly not priced in domestic political tail risk - one reason for donor class quiescence- but if they react to trade war/alliance destabilization it might stiffen some backbones
Reminder: Cong Rs rolled Trump on Russia sanctions and have driven the bus on legislation (ACA repeal, tax cuts). @MattGrossmann et al. think that - rhetoric aside - this admin's policies are mostly orthodox R. But these trade moves are not orthodox & could generate pushback.
