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Notes -
US and China slash tariffs as trade war cools
It looks like we will experience a de-escalation of the tariff battle between the US and China.
How does this line up with your personal predictions for how this was going to proceed?
My belief was that both sides would maintain 100+% tariffs but exempt essentially everything that matters. This development shows that I was wrong and I don't understand something about the events that have occurred. Does anybody have any ideas on what I missed?
Giving myself credit for calling this one, although we can quibble over exact timing. I tried to keep my head down a bit until the outcome could truly be called.
Quoth me:
(I solemnly swear I didn't edit anything material in this post to make my prediction look better)
and
I think my May 2nd deadline was also met, since China was technically the ONLY holdout that still had massive Tariffs on it at that point.
And then there's this bit from the OP article:
Remember what I said up there: "and markets will 'correct course.'
I'm sure there will be other disruptions, but someone can probably run some numbers and tell me if this recovery basically makes all the turmoil of early April a wash in terms of broad economic impact (on the markets, that is). WHICH IS TO SAY, if all the doomsaying and gnashing of teeth at the time was... premature and melodramatic.
I continue to think my Model of Trump is far better at predicting his actions than virtually any pundit out there, and he's far more of a rational actor than even people here credit him. Yes, I'll accept the argument that Trump backed down faster because he was afraid of really breaking something, but the whole argument is over whether the U.S. will find itself in a stronger position after all this is done. I see this as evidence that yes, the U.S. will be able to reduce global 'paper' barriers to trade, and other countries may be handing over some tribute to the U.S. to keep in its good graces for the next few years.
The one thing I admit surprise over is that there's been relatively few deals regarding the purchase of U.S. goods OR offers to sell foreign resources. The U.K. is apparently going to buy U.S. Beef, and the Ukraine Mineral Deal is signed, and I guess there's some additional deals with Vietnam. Honestly I can say I thought there'd be more capitulation by now, but now there's a new deadline in place.
So maybe Trump hasn't brought home the bacon just yet.
To add on to my prediction, I'll say I expect that the 'final' deals being worked on during the pause will start getting executed BEFORE the one month countdown mark hits, that is we should start seeing them in the next 60 days.
I do expect more hard agreements for purchases of resources and goods, and I ALSO expect some legislation might follow that is designed to bolster U.S. manufacturing for military purposes (i.e. aimed at onshoring factories that can produce tanks, ammunition, planes, and ESPECIALLY boats).
As we get a bit closer to the deadline, I might take a stab at guessing which countries might try calling his bluff and letting the timer run out. I'm not so blind as to expect everything to go completely smoothly. I wouldn't have called the India-Pakistan kerfuffle starting up for example.
That first link goes to the 2nd page of your most recent posts. Is that what you intended? It will mean that if the post you wanted users to look at was there, it won't be there later as you make more posts.
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