Lord, I Was Born a Tariff Man…
President Donald Trump has never subscribed to the theory that one should under prepare and over-perform.
Trump has grossly over exaggerated almost everything in his life and usually it seems to work for him. This approach, however, does not appear to be working with the Chinese.
Axios is reporting that Michael Pillsbury is worried that Trump’s boastfulness might be causing negotiations with China to unravel, “I have advised the president’s team that for the past 40 years the American side avoids disclosing Chinese concessions before the final agreed written statement is released,” http://bit.ly/2FXAVEf
The Washington Post is reporting that Wall Street is starting to loose faith in the Trump administration, ““It doesn’t seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump’s tweets (which seem if not completely fabricated then grossly exaggerated) with reality,” JPMorgan wrote in a trading note.” https://wapo.st/2Pk4RcS
Making matters even worse, President Trump tweeted about his love of tariffs yesterday morning, “….I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN” http://bit.ly/2BRIzvO
President Trump’s tweets, along with the lack of faith in his negotiating skills with China, caused the markets to tumble yesterday. The Dow Jones Industrial Average fell nearly 800 points and bond yields plummeted.
Pouring a little more salt on the wound, President Trump tweeted last night about more tariffs if China doesn’t pay ball, “We are either going to have a REAL DEAL with China, or no deal at all – at which point we will be charging major Tariffs against Chinese product being shipped into the United States.”
Today’s futures aren’t looking so hot. I think President Trump has reached a crossroads. He can do what he thinks is best for Wall Street or he can do what he thinks is best for main street. It’s clear, at this point, he can’t do both.
“It’s a bird, it’s a plane, it’s Tariff Man”