Investor heads are spinning – again.
As we near potential 15% tariffs on Chinese goods this Sunday, December 15, no one is quite sure what may happen.
One day, President Trump says it may be best to wait until after the 2020 elections to strike a deal. Then, White House economic adviser Larry Kudlow downplays reports of a tariff delay, noting, “The reality is those tariffs are still on the table, the Dec. 15 tariffs, and the president has indicated if the short strokes remaining in negotiations do not pan out to his liking that those tariffs could go back into place,” as quoted by CNBC.
Then, the South China Morning Post said a trade deal was unlikely before the Sunday deadline.
Then, just this morning President Trump sent markets soaring after tweeting, “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
While it’s still a wait-and-see, we may see even better news this afternoon.
According to Reuters, Trump is expected to meet with top trade advisers to discuss the December 15 tariffs on $160 billion in Chinese goods.
Again, it’s all up in the air. “When they get in the room, Peter’s going to say: ‘Hit ‘em.’ Larry [Kudlow] and Mnuchin are going to say: ‘Don’t do it.’ And I think Bob [Lighthizer] … is hoping he has enough to go on to justify not doing it,” reported Reuters.
However, China may have guaranteed a tariff delay
All after removing some tariffs on U.S. agricultural goods, including soybeans and pork.
“The goal (of this move) is to expand purchases and reassure the United States,” said a Chinese source who advises Beijing, as quoted by CNBC. “It should be interpreted as a positive signal. Despite the many political difficulties, the two sides face, economic and trade cooperation and moves to stop the escalation of the trade war are in the interest of both parties.”
China has also said it hopes to make a trade deal with the U.S. as soon as possible.