The great trade deal appears to be a charade

I can only go what Bloomie is saying:

President Donald Trump signed off on a phase-one trade deal with China, averting the Dec. 15 introduction of a new wave of U.S. tariffs on about $160 billion of consumer goods from the Asian nation, according to people familiar with the matter.

The deal presented to Trump by trade advisers Thursday included a promise by the Chinese to buy more U.S. agricultural goods, according to the people. Officials also discussed possible reductions of existing duties on Chinese products, they said. The terms have been agreed but the legal text has not yet been finalized, the people said. A White House spokesperson declined to comment.

So, what has Trump signed if everything except weekend tarrif hikes and previously agreed agricultural purchases is still just “possible”?

We await the White House release.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

  1. Good news for Christmas markets, see if they follow through, and if they don’t, then drop the hammer during CNY.

    It’s what I’d do.

    • I wouldn’t trade these markets at all. Hostage to the tweeter-in-chief and Fed liquidity injections. Ridiculous that it has come to this.

      As for the trade deal – something could be signed but whether it has any substance is highly debatable.

        • Inflation nonsense – talk about baffle with bullsh!t. Do these idiots believe all the guff they come out with – or indeed that it’ll make a blind bit of difference. All you need to know if that they will print money – endlessly. Until the existing monetary system disintegrates. The only uncertainty is timing – beyond that it’s all locked in.

          • Every day, every angle, they pull out more & more desperate denialism. I appreciate the way you cut through it all & stay on message.

      • He’ll sign it, then he’ll sign the Uyghur Act & China will spit the dummy! Or at the least Trump will claim (almost certainly correctly) in 6mths or so that China has failed to meet the terms & tarriffs will be back & he’ll appear the strong man in time for elections.

        Trump is playing the long game on this, all he needs is volatility & companies will diversify out of China, China trade is the only area he’s been consistent on.

        • One of the few books we know Trump’s read is “The art of war.”

          There are many aspects to him that appear utterly indecipherable, even insane, unless you consider the possibility that it’s strategy – as laid out by Sun Tzu.

  2. matthew hoodMEMBER

    Has there ever been a better chook feeder then Trump? The media just can’t help themselves.