The China Bombshell — Reading Trump’s Mind
Author: Greg Valliere
May 6, 2019
Our take on what Donald Trump is thinking this morning . . .
THE TALKS WERE BREAKING DOWN: I heard from Lighthizer last week that the Chinese were stonewalling on structural reforms. I had to send a message — no weak deal!
OUR ECONOMY CAN WITHSTAND THIS: Friday’s unemployment report convinced me we could crack down on China without a major economic impact in the U.S. What better time to take a risk — our economy is surging!
THE TRADE HAWKS WERE WILLING TO POUNCE: Lighthizer and Navarro weren’t happy with the negotiations, and they would have leaked to the press if we got a weak deal. The hard liners will love my new tariffs!
I HAVE POLITICAL SUPPORT ON THIS: Even Schumer supported my higher tariffs; only the Chamber of Commerce Republicans — a bunch of wimps — want to avoid a showdown. No time to go wobbly!
MY BASE WILL LOVE THIS: Sleepy Joe Biden thinks China isn’t a threat, but no one plays hardball like me on issues like trade — this helps me in Pennsylvania and Michigan!
WE’LL GET A DEAL: Didn’t the Chinese read “The Art of the Deal?” They should know how unpredictability works, just ask Kim Jong-un. I think there’s still a chance of an agreement in principle within a couple of weeks — if not, we’re prepared to wait!
THIS WILL HURT CHINA MORE THAN US: Their economy will take a major hit — our economy is surging. They need to save face? Maybe, but give them a few weeks and they’ll cry uncle!
THE MARKETS ARE UPSET, but we’re still close to record highs and if my new tariffs send investors to the safe haven of Treasuries, lowering interest rates — well, that’s my big goal. If the Fed won’t cut rates, maybe my tariffs will lower rates!
LET’S STIR THE POT: I survived Mueller, and the economy is great — now it’s time to focus on foreign policy. Watch out, China, Iran, North Korea, Venezuela — even Russia. No more Mister Nice Guy!
COULD THIS FAIL? Like I said, we’ll eventually get a deal — and no one can spin a deal like me; I can boast that my tariffs got us a much better deal. My critics always underestimate me but I get results!
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