'Freaking us out': British analyst warns Europeans pulling money from US over Trump fears
President Donald Trump's erratic economic policy is panicking overseas investors, and is likely to cause a mass withdrawal of European money from American markets, said Zanny Minton Beddoes, an editor for the British publication The Economist, on MSNBC's "Morning Joe" Monday.
Beddoes' fellow guest, CNBC's Andrew Ross Sorkin, moved the conversation with his analysis of Trump's comments over the weekend, where he refused to rule out that there would be a recession this year under his tariff policies.
"I think there's absolutely a weariness," among markets, said Sorkin. "I mean, the question is, is this a temporary situation, as the president has tried to describe, or is this a longer term issue where we could ... move into a recession, that that is where we are right now, which is if these tariffs, I think, continue apace and the uncertainty remains, it's almost impossible to see this not turn, turn down if things reverse themselves. And maybe, you know, Trump does all sorts of other things to try to boost the economy, which I think is still a possibility. Things could go the other way. So I don't think people know necessarily."
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Whichever way it goes, he added, "Trump is right about this: in the short term, there is going to be pain."
"That is certainly true, Andrew," agreed Beddoes. "I'm probably slightly more pessimistic than you are in that. I think everything we've seen in the last few weeks of how he behaves is that he can't resist the tariffs as threats of them, as tools of threats, and he believes in them. So I think there's going to be uncertainty even if there isn't a barrage on April 2nd, we won't know if there will be more after that."
"I think this is not something that's going to go away," she continued. "And I think that uncertainty, coupled with an even greater degree of uncertainty on his foreign policy, which we haven't talked about, but which for those of us in Europe is really freaking us out, means that I think people are generally — the uncertainty has soared about the U.S. economy. And so that's one of the reasons why people are taking it, taking their money out, foreigners."
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