The President continues to go after China, Mexico, and now even Germany with talks of tariffs and/or sanctions. Is there a method to this madness, or just madness? These antics are causing a lot of uncertainty and markets do not function well with uncertainty. Weaponizing tariffs may get the Mexicans to the table, but will this be so with the Chinese? Also, we discuss a recent ABC News interview with the President where he claimed he would look at information from a foreign entity regarding a political opponent. I would have hoped that the President would’ve learned his lesson during these last two years in relation to the Mueller Report. Nevertheless, the liberal MSM is throwing a hissy-fit at the comments, yet seem to forget that Hillary Clinton and the DNC received info from the Russians for the Steele dossier. More hypocrisy and more double-standards.
So the 2020 Presidential campaign antics are already taking shape with President Trump calling Joe Biden a “loser.” Meanwhile, Biden is telling Trump that he needs to, “fix himself.” These comments were made as both men were campaigning in the state of Iowa – the first state to kick off the Presidential primary season. It’s also a swing-state and one filled with huge ties to the agricultural industry, which has been taking a hit during the many trade negotiations. While we have several structural issues facing this nation, it’s nice to see that our fearless “leaders” can find the time to name call, but seemingly can’t find the time to provide solutions. Further, the President was talking about his secret deal with the Mexicans. Newsflash, Mr. President, this is a Constitutional Republic – meaning the people are supposed to be aware of deals struck between the US and other nations and their details. These petty games for the camera need to stop!
Tariffs, tweets, and trade, oh my! What kind of week would it be if we didn’t have some crazy tweets? A peaceful week, that’s the kind. Nevertheless, the President and his team are ramping up the rhetoric when it comes to implementing tariffs against not only China, but also on Mexico. Despite having negotiated the USMCA, which is like a NAFTA 2.0, the President was and is willing to slap on new tariffs. How are the Chinese to interpret this? Will this bring them closer to the table or force them to dig in even deeper? Regardless, there is much more that we have to note as last week we witnessed only 75,000 jobs created for the month of May, well off estimates for 180,000. No tweets from the President on this by the way. Nevertheless markets rallied, because we are back in the, “bad news, is good news” cycle because the crackheads on Wall Street want their fix and the Federal Reserve may just come through. So any bad news that comes out is actually “good” because it means the Fed is more likely to cut interest rates. You know, that policy that caused huge malinvestments and is likely to bring the world to its knees – yeah, that one!
So President Trump was and is back at it with his favorite tariffs. This time, he’s targeting the Mexicans and threatening new tariffs unless they act on the southern border. Well no surprise, in an 11th hour deal, the tariffs are now indefinitely suspended. Of course, the President is already back out there saying that if the Mexicans do not follow through with the new deal, then the tariffs will go into effect. This news has moved the markets and now we question how this is going to effect the trade negotiations with China. Will they be able to trust a President who is so willing and eager to threaten more tariffs even after striking a deal? You know, like the USMCA…
