The stock market surged on Monday after a 90-day ceasefire of the trade war between the U.S. and China was announced after the G20 Summit, with the hope that it would ratchet down tensions between the two nations in the long term and provide relief for companies that have been feeling the pain from tariffs.
Then investors came to the realization that President Trump’s claims of Chinese concessions in his trade war with China were not actually agreed upon. “We don’t yet have a specific agreement on that”: White House backtracks on China deal:
President Donald Trump’s victory lap on a temporary detente in the trade war with China might be a little premature — and misleading.
In a series of tweets over the weekend, the president celebrated the modest compromise on trade he reached with Chinese President Xi Jinping in Buenos Aires on Saturday in which Trump agreed to temporarily hold off on increasing tariffs on $200 billion of Chinese goods in exchange for China purchasing a still-to-be-defined amount of American-made products.
Trump declared that China had agreed to reduce and remove tariffs on cars coming into China from the US, and he wrote that China intends to “start purchasing agricultural product immediately” from the US.
“Relations with China have taken a BIG leap forward!” he tweeted.
It’s not clear, however, how much Trump’s declarations line up with reality. White House aides and China have told different stories than the one Trump is offering on what exactly was agreed to, and what’s going to happen and when.
“It doesn’t seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump’s tweets (which seem if not completely fabricated then grossly exaggerated) with reality,” one JPMorgan analyst wrote in a note to clients reported by CNBC’s Carl Quintanilla.
“This is a situation that’s played out over and over again throughout Trump’s presidency — he makes a declaration, only to leave aides, his counterparts, and reporters scrambling to figure out what the truth actually is.”
Posted in AZBlueMeanie, Congress, Economics, GOP War On..., History, Party Politics, President, Taxes
Tagged China, Recession, stock markets, Trade War
Economic forecasters expected another strong jobs report today. That didn’t happen. Steve Benen has the March jobs report. Following February’s highs, job growth slowed down in March:
The Bureau of Labor Statistics reported today that the economy added 103,000 jobs in March, while the unemployment rate held steady at 4.1% for the sixth consecutive month. In both cases, forecasts projected better progress, making today’s report disappointing.
Making matters slightly worse, the revisions for the two previous months – January and February – point to a combined loss of 50,000 jobs as compared to previous BLS reports.
Posted in AZBlueMeanie, Congress, Corruption, Economics, Ethics, Immigration, International, Labor, Legislation, Party Politics, President, Racism, Scandals, Taxes
Tagged free trade, income inequality, stock markets, Trade War, wages
President Trump on Thursday directed the US trade representative to level tariffs on about $50 billion worth of Chinese imports. Why Trump’s tariffs on China are a big deal:
In the next 15 days, US Trade Representative Robert Lighthizer will publish a list of products that his team intends to hit with tariffs. It’s not clear how high the individual tariffs will be.
The United States also plans to impose new investment restrictions and take action against China at the World Trade Organization.
The trade conflict between China and the U.S. escalated, with Beijing announcing its first retaliation against metals levies hours after President Donald Trump outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way. China Hits Back on Trump Tariffs as Europe Off Hook for Now:
On Friday, China unveiled tariffs on $3 billion of U.S. imports in response to steel and aluminum duties ordered by Trump earlier this month. The White House then declared a temporary exemption for the European Union and other nations on those levies, making the focus on China clear. Though Beijing’s actions so far are seen by analysts as measured, there may be more to come.
“Trump’s Trade War” has caused a decline in world markets:
Equity indexes from Tokyo to Frankfurt tumbled with European equities falling to the lowest in more than a year. U.S. stock futures dropped, signaling a further retreat for the S&P 500 Index after it fell 2.5 percent, on risks a further escalation in trade tensions will undermine an unusual phase of synchronized global economic growth.