Stocks took a hit on Tuesday, after President Trump said it may take until after the 2020 U.S. elections to complete a trade deal with China.
Chris Matthews for MarketWatch:
Stocks slumped after Trump told a London news conference where he is attending a NATO meeting that he had “no deadline” when it comes to concluding the two year old U.S.-China trade talks.
U.S. Commerce Secretary Wilbur Ross reinforced the message when he told CNBC that Trump is “serious” when he said that trade talks with China may last past the 2020 elections.
“We have seen this movie many times before however where the President throws out remarks during trade talks that in retrospect have just been a negotiating tactic, especially when he starts off by saying China wants a deal more than he does,” said Chris Rupkey, chief economist with MUFG.
“We still think a phase one deal is coming, although it is likely to go down to the final deadline of December 15. Markets are trapped by the changing news, but this is exactly like a reality TV show where the outcome continues to be drawn out to the bitter end. The President can’t afford for stocks to crater that much is clear with an election hanging in the balance less than a year away.”
Stocks with exposure to the trade war led the market lower. [For example] Caterpillar -2.03% and Apple -1.78%.
MacDailyNews Take: Negotiations by definition are a back-and-forth, give-and-take situation. It seems like a long, meandering, up-and-down trip, but eventually we’ll all arrive somewhere – hopefully someplace nicer than before!
Hey where did all the comments go?
Trump and the Republicans were having a tough time with the negative posts.
Everyone knows if this drags on for another year a bunch of small businesses and farmers are going down. They are screwed. The Chinese are still buying what they need but doing so from other farmers from around the world, in particular farmers in South America.
The #cult45 cult is seeing the effects of their blind obedience.
The DENSE people are trying to keep up with the lies and misdirection or they just don’t care.
Empty promises that the cult falls for.
Con job by a con artist!
MDN seem blissfully unaware of the real damage this is causing and seem to ignore the fact that this is a crisis of Trump’s own making and that trade wars benefit no one.
As this drags on it’s worrying to see more and more comments made by Huawei and other foreign companies who say they are looking to or have eliminated US components from their supply chain.
This is not great long term for US companies or exports. If this really drags on and Trump starts throwing tariffs at France, EU and other countries, by the time this is all sorted out, foreign companies will be less reliant on US goods and components by default which is an even worse situation than we were in before this all started.
Don’t get me wrong I believe the US was at a disadvantage in some very specific aspects of trade and Trump was right to look at it again but the way he’s doing it is crazy, not seen any evidence he’s a good businessman or negotiator.
#45 is the enemy of global commerce. How many more lives and industries will he burn before the nightmare is finally over? It’s beginning to look like Avengers endgame.