The TRUTH About A China Trade Deal
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So you’re saying there’s a chance. A little dumb and dumber reference right there. Is there a chance? Well, this is what we’re hearing. boy, maybe, maybe, just maybe we might get some sort of trade deal. People backing off China signals that they’re ready to respond to our US overtures here.
It’s weighing starting talks with the US to a trade war, but only if Washington shows sincerity through concrete measures such as by canceling tariffs against Beijing. We kind of been doing that little by little. got rid of that de minimis exemption. Again, I think there’s supposed to be a handout to lot of small business owners.
probably lot of resellers on Amazon, it’s most certainly going to help Shine and Tmoo. And, you know, one of the interesting things about that is, supposedly, that’s one of the ways that a lot of drugs get into the country. But we’ll just, you know, leave it at that. China’s Commerce Ministry is evaluating comments and messages from US officials that express their willingness to negotiate with China.
on tariffs. China’s position is consistent. If you want to fight, we will fight to the end. If you want to talk, our door is wide open. If the US wants to talk, it should show sincerity to talk and be prepared to act in correcting its erroneous actions and canceling unilateral tariffs. China’s already eliminating some of the tariffs on our goods as well. Yeah, they are. They need certain
various different inputs and materials from the United States. Some of the Asian papers that I follow, particularly was the Times of India, reporting that they’re having issues, riots in certain places in China where workers are very upset they haven’t gotten paid, factories are getting shut down, people being laid off. This is actually from the Economic Times of India.
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China sees surge in worker protests over unpaid wages, factory closures, and US tariffs. Again, some might think, might be right, might be right, we’re winning. We’re winning this tariff war with China. They’re going to come to the table. Again, I wanna remind everybody that again, we’re also backing down as well.
You’re already seeing, again, we’ve talked about Rand Paul and his desire to eliminate the tariffs because again, it’s not an emergency, it’s taxation and something that I happen to believe in. But you’re actually seeing others as well. Ron Johnson, yester being interviewed, I’m hearing an awful lot from manufacturers in Wisconsin. If this thing drags on, the tariffs remain high, their businesses will be out of.
business. And that’s what I get to. I get my email box, various different companies that are either shutting down or planning on shutting down because they just can no longer exist under these tariffs. Again, the other side of the argument, they’re not very good businesses and they should be able to adjust and they should be able to adapt. The thing is with China,
and how China can prevail in this trade war. They just, again, they don’t have elections.
We do.
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And the reality is, is that if they can hold out, they can suppress riots and people that are upset because they’ve done it before. Okay. Yeah, they, they were, they hushed up a lot of the stuff that happened during COVID and the COVID lockdowns, but we all saw what happened at Tiananmen Square. Let’s understand who these people are and the mentality there.
that party is going to want to on to power.
They need to wait out to the midterms, quite frankly, or they need to wait out to, again, you start seeing more and more Republicans say, well, listen here, this is not working out. My district is being hurt. I’m going to lose my reelection bid. And they keep that. That’s our system versus their system. Quite frankly, I like our system better. Some may disagree.
Going back to my original argument talking about China and our need to deal with them in regards to reciprocal tariffs, I’m on board with that. This global thing, I’m not. And part of the reason, okay, is that what it could do, what it can do to the United States, what it’s doing to the United States in regards to, because you’re actually already hearing it from
CEOs already saying, hey, listen, this is a problem. know, people are not buying our products. Multinational corporations are working overseas. There’s more certainly been a blowback to the American brand. We’ve obviously talked about tourism over the past week and how it’s been affected here in the United States. But that’s just to start. mean, we saw what happened. Trump was forced to give the 90 day pause.
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was forced to do that. No doubt about it. He saw what was happening in the bond market. We’ve already seen what has happened to the dollar and the fall that has taken place. You need to understand, I’m gonna try to get you into my mind. Again, people have been listening to this program for some time. We deal with risk. Okay, that’s what we deal with every single day, risk and reward.
What is the thing I say countless times, whether it be on the radio show, whether it be on the podcast, you never, ever, ever let risk lead to ruin. Never. Let give you an example. A company that’s in many of our portfolios for our clients, NVIDIA, that we’ve had for years. It’s done pretty well.
It’s done pretty well. know, some, again, people who are not thoughtful would say, wow, man, I bet you wish you loaded up and went all in on Nvidia 10 years ago. No, no, because first and foremost, it’s wrong. You don’t have any sort of hindsight when it comes to the, mean, you can’t see what’s gonna happen into the future. And granted,
The stock did phenomenal. The company did great. But what if it didn’t?
What if it didn’t do well? What if something else popped up? See, this is one of the things is I, you know, I comprehend that I don’t know what I don’t know. And I know that I can’t see into the future.
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And am no way know how that never gonna happen in a million years. Am I gonna do I don’t care how sold I am on a company’s prospects. Am I gonna go out?
and take an oversized position in something that could let risk lead to ruin. And in many respects, I mean, I go off on hedge funds all the time for doing that. That long-term capital management led by a bunch of super smarty pants, Nobel laureates in economics needed to be bailed out, whether they’re take the global economy down.
How many times have we highlighted garbage funds, hedge funds, various different actors out there that again, we’re too smart for their own good, gotta go all in. You don’t let risk lead to ruin. Why shouldn’t Trump upset the apple cart and break things and do stuff? Why? Well, what if it doesn’t work?
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Listen people like I said, I I understand I said from the get-go, you know a scalpel not a chainsaw a scalpel and you handle these things the right way now you take a look at you know, some of the the economic numbers that came out today and everybody’s jumping up and down for joy Wow, look at look at the The April jobs report and isn’t it awesome. Yes, it’s a great number
fantastic number. But that number, quite frankly, as of right now, is meaningless.
It’s meaningless. We’ve already seen what happened to GDP. I explained to you the GDP report regards to the import-export caveat in there and the fact that so many companies were front-running their buy orders prior to the tariffs kicking in. We don’t know what’s going to happen. Again, I quite frankly don’t know. Maybe many businesses out there will hold off.
on firing people and hoping that, you know, this is gonna all come to some sort of end sooner rather than later. Again, when you bring on employees and you train them, there’s a cost involved with that.
We’ll see. We’ll see. again, cooler heads will prevail. Both China and the United States will work something out moving forward. This is a good sign. And quite frankly, that’s the reason why the markets at the open were up today. Have to tread very carefully.
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have to tread very carefully moving forward. Again, like I said, understand who, I’m gonna do a little sun sue, the art of war. You better understand who we are having this tariff war against, or this quasi embargo, some of the embargo stuff is going away as of late, and what they’re capable of doing that we’re not capable of doing here in the United States.
And once again, we have individual rights and liberties here in this country. They don’t.
They don’t. You you send them, you know, got some sort of riot out of factory. They’ll shut that thing down, quick.
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And it’s everyone’s pain tolerance. Our pain tolerance, a little bit different.
little bit different because we are Republic. Watchdogonwallstreet.com.
