So that's the deal???? All this talk and they lower it to 30% This is not a deal....30% that's weak as fuck Hilarious. Risk is ramping up on the headlines here with S&P 500 futures now up by 2.5% on the day. Essentially, the US to cut tariffs on China from 145% to 30%. Meanwhile, China is lowering theirs from 125% to 10%. This will apply for a period of 90 days for now as both sides look to discuss further on how to seek further progress in trade negotiations.
cool down!!! Anyway, a few minutes ago, the whole world's index futures, gold ... moved very rapidly. The damn charting s/w could not handle the sudden heavy load. You have the right to feel angry. To hell with the charting s/w!!! Watch out RUSSELL 2000!!! It will reach the moon shortly.
Watching the 10 yr move up which doesn't bold well for small caps... Russell almost 20 handles off its high....
Exactly with tariffs that low why is any manufacturing going to occur back into the US. As I said a thousand million times these companies are not going to manufacture in the USA, in 5 years America will still be importing 70% of their goods from China... With tariffs at just 30% there is absolutely no need for any company to spend billions of dollars building in America to manufacture when they can easily pass the cost on to the consumer.... So if you really think about it this trade deal was a complete FAIL!!!! All those scare tactics of 145% did nothing. No company is going to America to build and no jobs are coming back ..... That was the whole point of the trade war and it seems none of what they promised is going to happen.
A 90 day pause and during that pause 30% on China/10% on the United States Bessent looks disappointed and a little scared in the trade deal when he made that announcement from Geneva. China people looked happy and smiling. Yet, we all know that Trump approved of the deal and that it was not Bessent making an independent decision on the trade deal. Simply, big time back tracking by Trump and no more the Art of the Deal to make America rich. Markets will love this as the tension has now been temporarily let out of the balloon but the FED will now become more embedded in leaving rates at its current levels. That means Trump will increase his rhetoric attacks on the FED chairman. To compensate for the disappointment and to not encourage Canada or other countries from doing what China just did...Trump will need to go back to writing executive orders to target specific industry groups in the world but that will slow the growth of American companies in the same specific industry groups. wrbtrader