“Military strategists know a battle can begin in one theater but quickly move into another,” he wrote. “Similarly, what begins as a trade war can evolve into something bigger. It’s a truth worth remembering as the United States imposes substantially higher tariffs on our trading partners, who have the ability to respond in unanticipated ways.”

Trump has imposed tariffs on China and announced duties on steel and aluminum that will go into effect next month. He unveiled tariffs on Canada and Mexico but put them on hold for month. He also directed his administration to study reciprocal tariffs, with potential to enact them in April.

Along the way, he has sown confusion over which tariffs should be taken seriously and which should be been seen as negotiating tactics. But markets are starting to view Trump as more of a “pushover” on tariffs instead of a protectionist, UBS said this past week.

Source: FORTUNE