Trump has finally revealed he was targeting China the whole time.
His wild and unpredictable behavior has permanently soiled global perceptions of stability in the US forever. Investors and companies will be even more likely to move their supply chains away from the USA.
Trump has levied 125% (correction: 145%) tariff on China and dropped all other tariffs for 90 days. The U.S. can’t compete with China, so they are panicking.
China would absolutely sit down to hammer out a deal, but Trump is so erratic, that Beijing will only take slow and steady moves.
The Facts:
*The majority of the world's primary trade partner is China.
*The US primary trade-partner by proxies is China.
*US manufacturing relies on affordable Chinese imports to produce goods for export.
*Only 2.7% of China's economy relates to exports to the USA.
*China has 650 million middle and upper class consumers.
*The USA has 150 million middle and upper class consumers.
*China has the most well developed national and international logistics and supply chains ever seen on earth.
The US needs China.
China doesn't need the USA.
Does China want trade with the USA? Absolutely.
But China has ALL the TRUMP cards.
Trump's advisors seem not to understand the realities of the situation.
The US failure to comprehend the reality of the situation will end up hurting regular folks in the USA the most.
I am skeptical that Xi would make the first move to negotiate, Trump will continue to moan about him wanting to do a deal but don't know how to.
When China sits pat throughout after the 145% tariff starts 'smashing' US consumers, Trump would be trapped by his own actions - back down and he looks weak, continue with 145% and his electorate won't be kind to his party's political future as many things ordinary American folks buy rise within 3 months.
Ironically, Trump needs to re-assess about 'who has the cards here' before he pulled the trigger.
He could have saved himself some embarrassment by just sticking to 54%, now I am thinking he will have to find a way to unwind his position but still declaring himself as 'winning'. That would be the next move that will blindside the market again. Insiders could now be back short. For a short while.
A leader with zero emotional IQ is creating more unnecessary collateral damage, self-inflicted in every way. A strong leaders makes calculated calibrated strategic moves without a need to outwardly/openly demonstrating projected/perceived victory.
