This is huge as it allows the US (unclear if it is Congress or the president) to launch a "capital war" with, or without, a trade war if it wishes. We are trusting an arbitrary US government to determine what constitutes an unspecified "discriminatory" definition. We are currently a country who has a war based on fentanyl and an invasion by Venezuela et al who have been "ripped off" by every nation in the world when it comes to trade.

From the standpoint of a foreign government/entity, if I was assigning "political" risk to nations as a function of what return I desired on bonds (or other investments), this would put a heavy thumb on the scale for me. I would also thing that "retaliatory" wording would begin to crop up as laws in other countries - throwing cold water on investments world-wide.

Jeff

Macroeconomic Trends and Risks FAQ

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