Everything You Need to Know About Trump’s Trade Truce with China

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China, US, deal or no deal? I don’t know. Did we agree to disagree? How is this thing working out? Actually, I heard a funny one too. Again, people from back in the 1990s. This is like the television show Friends with Ross and Rachel. They’re on a break. They’re on a break. We’re on a break from the tariffs at this point in time. this is in the Wall Street Journal today. They said a few days ago would have seemed almost in

Possible. But on Monday, to the surprise of global investors and everyday businesses fearing a trade war, the US and China agreed to a truce. I disagree. A few days ago didn’t seem almost impossible. We’ve said from the very beginning that it was inevitable. Was inevitable. My concern the entire time was how quickly

we could get this thing actually done to help small businesses, to help retailers, to deal with what was wicked was coming on both sides, whether it be our side, whether it be China’s side. Two, world’s two biggest economies unwound for now, most of the tariffs they had imposed on each other since April in a tit for tat battle that was threatening to stoke US inflation.

crash China’s export engine and upend the global economy. Let me put it to you this way, okay? The markets are powerful.

powerful. I don’t remember the exact date when Donald Trump put the 90-day reprieve on the entire world except China. Again, why? Why? Again, he admitted it. He’s like, the bond market’s getting yippy. It’s getting yippy. Yeah. We explained to what could have happened if that reprieve was not put in.

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And again, I think that Donald Trump was well aware of what was going to happen here in the United States. I don’t care how loyal, how loyal the MAGA base is. You start seeing store shelves that are empty. You start seeing supply chains that are screwed up. Already had announcements, know, companies announcing, yeah, Ford changed their mind, going to raise their prices.

It’s gonna get ugly. Gonna get ugly and this is why this needed to be done. What we’re gonna be looking at moving forward, what’s gonna happen next is I think it’s gonna be quiet, all quiet on the trade front. All quiet on the trade front from time to time. You’re gonna see an announcement here, there. I think that this is, like I said before, backing away.

backing away from one of the biggest unforced errors I’ve ever seen in my entire life. I’ve made that perfectly clear here on the program. Made absolutely no sense whatsoever. Wasn’t handled properly. And I’m glad to see that both sides are saying, okay, enough here. But again, you want to chalk this up as a win? Okay, if it makes you feel good. Makes you feel good. What do we win?

What do we win? Again, I’ll take you back in time to Liberation Day. When the first announcement out there was going to be 10 % tariffs across the board, the markets immediately reacted in a positive manner. Immediately. As soon as those ridiculous charts came out, reciprocal tariff charts that Donald Trump brought out with the fake formula that they put out like the next day,

No, went haywire because it didn’t make any sense. So basically the rate to China is gonna be around 30%. We got a 20 % tariff because of the fentanyl trade, but supposedly China is gonna work with this on getting those precursors out of our supply chain or getting them out of the Mexican supply chain where those things are going. So you get 20 % there, putting the 10 % on everywhere else.

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China’s gonna cut our rate to 10 % as far as tariffs are concerned. Again, I wanna remind everybody that that 10 % rate and Howard Lutnick said that that’s the best anybody’s going to get is the 10 % rate. It’s a tax on us. Okay? That is a tax on the American people, but I’ve made that perfectly clear. You know, it’s funny now, you’re starting to see other stories come out.

I got a kick out of this Apple basically saying that we’re you know, they’re going to looking to raise their prices this fall. Consider raising iPhone prices fall alongside new features and design changes, but they want to avoid attributing price hikes to US tariffs on Chinese goods. They’re actually putting that out there, meaning that, yeah.

It’s because of tariffs that our prices are going up. They’re almost playing it like, you know, the old Saturday Night Live character played by John Lovitz there, the pathological liar. Remember Tommy Flanagan? Yeah, yeah, yeah, that’s the ticket we’re raising our prices, but it’s not due to the tariffs. Yeah, yeah, that’s the ticket. No, that is the ticket. That’s why the prices are going up. One more thing on trade. We had fun with the UK US trade deal last week.

If you actually go look at the document, it says right in the document that this document does not constitute a legally binding agreement. Again, it’s basically a press release. It’s a press release. They have this thing called PR News. You know, it’s like PR News, why there’s various different PR agencies where companies or anybody can pretty much just put out a press release. That’s basically all that UK deal was. Again,

We’ve got other negotiations that are supposed to take place. Again, 200 deals going, 18 deals going. I don’t know what deals are being struck here, there, and everywhere. But I got a funny feeling that a lot of this trade talk is slowly but surely going to fade to black. Watchdog on wallstreet.com.