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READ: JP Morgan Traders’ Note: ‘It Doesn’t Seem Like Anything Was Actually Agreed to at the Dinner,’ Trump’s Tweets May Be ‘Completely Fabricated’

Sounds about right.
donald trump, china tariffs, trade war, xi xinping, g20

Alec Phillips, chief political economic for Goldman Sachs, suspects the US and China are at a “pause” phase whose outcome is uncertain.

“This outcome is closest to the “pause” scenario we outlined in recent comments (here and here) although the length of the pause is fairly short,” Phillips said.

Helen Qiao, China and Asia economist for Bank of America Merrill Lynch, noted the complexities of what each side is after. “The next step is to find out how big is the gap between what China is willing to offer and what the U.S. is willing to accept to make it a deal,” she said.

Sacha Tihanyi, deputy head of emerging markets strategy at TD Securities, said the “aforementioned ‘structural’ issues are not ones that we believe can be easily tackled in a 90-day period.”

Ellen Zentner, the chief US economist at Morgan Stanley, worries that “the U.S. agreed to pause tariffs without any meaningful concessions on the toughest negotiating points.” She added: “There’s still plenty of scope for further escalation before final resolution. If the U.S. continues to insist on its toughest demands, it’s learned it can lean on more tariffs, as its pressure tactics have worked to some extent.”

Trump on Tuesday reaffirmed his administration’s efforts to achieve trading parity with China, which Trump slapped with hefty tariffs earlier this year.

But, in a seemingly contradictory move, Trump threatened to impose additional tariffs if China does not play ball his way.

President “Tariff Man” is missing a key point here. Tariffs are paid by American taxpayers, not foreign governments. Higher tariffs mean more money out of consumers’ wallets.

Senator Ben Sasse (R-NE) reminded him of this in a tweet.

Trump does not have as much to brag about as he would like to believe.

JP Morgan’s concerns were coupled with the more than 700-point plunge the Dow took on Tuesday, which has stoked fears that another recession could be on its way.

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    Brandon Gage

    Political Writer

    Brandon began his writing career in a hospital bed in July, 2017. His mission is to provide insight ... keep reading