Q: Don’t you think Trump is forcing investors to move from stocks to bonds in order to reduce interest costs on the federal debt as a result that would leave room for tax cuts.
5i Research Answer:
It's possible, but since tariffs are a 'tax' then the net benefit is not much. With lower capital gains taxes expected (due to the market decline), further tax cuts of course will hurt the deficit even further. The fact is that tariffs also will not bring in nearly what the administration expects. Thus, the ability to cut taxes may be far less than what they expect.