Market Commentary

Trade Talks

gross domestic product

Apparently, the trade talks with China are entering a final phase with China trying to renege on issues already agreed to and Trump threatening to raise tariffs to the levels he wanted in the first place. This sounds like a lot of posturing to me. Note the main trade negotiator for China is still coming to the U.S. to work things out.

Expect more saber-rattling over trade before a deal is finally made, and even after that the implementation of whatever they agree on is going to be fraught with issues. Those won’t be dealt with until after the next presidential election. Trump needs the deal for his re-election bid and China needs it to help their economy. The stakes are high on both ends so a deal is likely at some point.

It just won’t be easy.

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