Trump Denies WSJ Report, Says "Under No Pressure To Make Deal With China"

The reason why the market spiked yesterday just before noon, if briefly, was a WSJ report that the Trump admin is reaching out to China for a new round of trade talks, in an effort "to give Beijing another opportunity to address Washington’s concerns over trade issues before the Trump administration implements additional tariffs on Chinese imports."

Many took this with a grain of salt - after all this would be the third time in the past month that the US and China were supposedly trying to break the trade war deadlock - but more importantly, the person behind the outreach was noted globalist Steven Mnuchin who as we said yesterday, "is well known to be for a resumption of better trade relations", while trade hawk Navarro has been pushing for a far more hard-line stance with China.

To resolve this confusion, we said: "Perhaps the best option is just to wait for Trump to tweet his own thoughts on the matter".

Well, moments ago Trump did just that, when he poured cold water on the diplomatic implications of the WSJ's report, tweeting that "The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us".

Why? Because as we also said yesterday, Trump remains convinced that he has all the bargaining leverage because - according to the stock market - he is winning the trade war with Beijing, to wit:

Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home.

So where does that leave us? Well, pretty much where we were before the WSJ report, or as Trump put it, "If we meet, we meet?"

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Gary Anderson 5 months ago Contributor's comment

Trump has a severe personality disorder. He will not make a deal if he thinks he can win. Stock investors beware.