Following a month of escalating trade tensions, the U.S. and China agreed to a 90-day trade truce, significantly reducing tariffs on each other’s goods. This announcement prompted a surge in global markets, with the S&P futures soaring 3 percent. The agreement involves the U.S. lowering tariffs on Chinese imports to 30 percent and China reducing tariffs on U.S. products to 10 percent. While details remain unclear regarding specific concessions, both sides expressed a shared desire to avoid complete economic decoupling.
Read More
Treasury Secretary Scott Bessent privately predicted a de-escalation in the U.S.-China trade war, deeming the current high tariffs unsustainable, although formal talks haven’t begun. Despite Bessent’s assessment, President Trump publicly maintained that the U.S. is “doing fine” with China, promising lower, though still substantial, tariffs and a cooperative future. However, China warned against deals detrimental to its interests, highlighting the ongoing uncertainty impacting global markets and prompting Trump to again pressure the Federal Reserve for lower interest rates. The stock market reacted positively to Bessent’s remarks, reflecting investor hopes for a resolution to the trade conflict.
Read More
Following President Trump’s softened stance on the U.S.-China trade war and expression of optimism for a deal, China’s foreign ministry spokesperson stated their willingness to engage in talks. This shift in tone, coupled with comments from U.S. Treasury Secretary Scott Bessent suggesting a de-escalation, positively impacted global markets, which saw significant gains. While Trump maintains high tariffs on Chinese imports, the potential for de-escalation has eased recession fears. Further progress remains dependent on ongoing negotiations and future statements from both sides.
Read More
President Trump temporarily rescinded his recently implemented broad tariffs, reducing them to 10% for 90 days following significant market downturn. Simultaneously, he dramatically increased tariffs on Chinese goods to 125%. This decision, made after considerable pressure and claims of international negotiation, offers short-term market relief but leaves long-term economic policy uncertain. While the administration defends the actions, public and expert disapproval remains high, with the stated goals of increased manufacturing and revenue generation viewed as contradictory and unsubstantiated.
Read More
President Trump’s “Liberation Day” tariffs, including a 104 percent levy on Chinese goods, went into effect, causing significant market turmoil. China retaliated with an 84 percent tariff on U.S. goods, further roiling global markets and triggering a selloff in U.S. Treasuries. The resulting economic downturn included steep losses in Asian and European markets, pushing the S&P 500 toward bear market territory. Despite these consequences, Trump maintained confidence in his economic strategy.
Read More
John Q. Hosedrinker