E A US-China Trade Deal Is Coming

Some people believe that President Trump is so incompetent that none of his initiatives can yield anything positive for the U.S. 

Leaving aside that his policies have already helped facilitate lower unemployment and higher wages, it appears that his threat to place tariffs on Chinese imports has yielded positive results. As a result, my April 3 prediction that China and the U.S.. are "likely to reach a trade deal soon" is looking more and more accurate.  

Specifically, in a little noticed speech  (the FBI's raids on the president's lawyer and Mark Zuckerberg's Senate testimony dominated the news cycle), China's President,, Xi Jinping, made several important concessions to the U.S. In a seeming nod to President Trump's complaints about America's large trade deficit with China, Xi said China would look to increase its imports. Apparently looking to meet another key Trump demand, Xi promised to "significantly lower tariffs on imports of automobiles, and also loosen restrictions on foreign ownership in the auto sector." Finally, Xi's commitment to further open up its financial markets to foreign firms will undoubtedly please President Trump.

There is now a very low likelihood of the U.S. and China embarking on any sort of trade war. Not only, as I pointed out on April 3, has ""President Trump ...always been a deal maker," but the president's new head economic adviser, Larry Kudlow, has made abundantly clear that the administration is looking for a deal with China, not a trade war. And President Xi, with his rather long list of concessions, is also obviously looking to make a deal, not fight a war. So with both sides ready and willing to compromise, it appears that a deal is just a matter of time. I remain convinced that a deal with be reached by September, in plenty of time to impact the U.S. elections. 

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David Reynolds 2 years ago Member's comment

I could still see this going a number of different ways. Trump is rather unpredictable.

Larry Ramer 2 years ago Author's comment

You don't think that the concessions by the Chinese strongly indicate that a deal is in the making?

David Reynolds 2 years ago Member's comment

I think both the Chinese and Trump are rather unpredictable. Anything is possible.

Craig Newman 2 years ago Member's comment

With #Trump, anything is possible.

Larry Ramer 2 years ago Author's comment

I think he has a definite strategy here that seems to be working. China is making a lot of unprecedented concessions.

Bill Myers 2 years ago Member's comment

#Trump has had a surprising number of wins lately. If he can achieve a lasting peace deal between North & South Korea, he may even go down in history as a "great" president. Shocking.

Angry Old Lady 2 years ago Member's comment

I don't think #Trump can really take any credit for a North Korea deal.

Bill Myers 2 years ago Member's comment

We don't really know what he's doing behind the scenes. And I'm sure his saber rattling likely pushing NK closer to a deal. And regardless, Presidents always take the blame/get the credit for anything that happens during their presidency.

Larry Ramer 2 years ago Author's comment

I think #Trump is also going to do the right thing with I#ran.. tough economic sanctions.