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Sorry Mr. Trump, But China Is Going To Need Some ‘Leniency’ On All That Stuff They Promised To Buy
Last week, I wondered if the coronavirus epidemic would imperil the Sino-US trade pact before the in
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PS — Erasing a year’s worth of gains would cost the S&P 16% of its current value and 24% off QQQ.
It is something I have been wondering about since the news of the spread of this virus hit. It isn’t going to play well in Trump Country that is for sure, but I am not sure what the administration can do about it besides screaming and threatening.
They can try throwing actual punches… he could say, well then burn the deal and I’ll implement the full array of tariff’s I planned then in a fit of rage hit Europe just for the fun of it.
The trade war is likely to flare up in the longer term regardless of extenuating circumstances.
The Trump administration is not going to fan those flames, however until after the election. Trump already has the PR benefit from the deal to show his supporters. The last thing the president would wish to do as 2020 progresses is roil markets. Not merely because politicians never want to make the electorate feel poorer as they head to the polls but also because Trump has made stock market performance the bellwether of his economic performance.