President Donald Trump’s post-G20 boastful rhetoric over improved trade relations with China may be “completely fabricated,” according to JP Morgan’s note to traders.
After a Saturday meeting with Chinese President Xi Jinping in Argentina, Trump declared a de facto cease-fire on the US-China trade war.
Trump on Sunday tweeted that Xi had “agreed to reduce and remove tariffs on cars coming into China from the U.S.,” which the president said are currently at 40 percent.
There is no evidence this actually happened.
In a note to traders on Tuesday, JP Morgan expressed its doubts over whether China capitulated to Trump.
“It doesn’t seem like anything was actually agreed to at the dinner,” the bank said in a note to traders, “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.”
Adam Crisafulli, executive director at J.P. Morgan Chase, said “this ceasefire looks very similar to what China had offered Washington months ago,” therefore, it is not “exactly clear what was gained by dragging the dispute out until the end of the year,” referring to Trump’s 90-day deadline.
Sure does look like Trump caused a problem so he could take credit for fixing it.
Other major financial institutions have their reservations as well.
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Republicans gonna Republican.