This won’t make farmers happy.
On Tuesday President Trump said he doesn’t have a deadline for completing a trade deal with China, and he might even wait a year.
In London, Trump said:
“I have no deadline, no. In some ways I think I think it’s better to wait until after the election with China. But they want to make a deal now, and we’ll see whether or not the deal’s going to be right, it’s got to be right.”
The news sent the equity markets lower as investors considered the possibility of the trade war weighing on global GDP for another 12 months. Along with stockholders, farmers won’t be impressed by the idea of waiting. China is a major buyer of soybeans and other crops. The longer the trade war goes on, the less American farmers sell.
But, as with everything Trump, there’s always the possibility that he’s either trying to get into the mind of his opponent, in this case the Chinese, or simply speaking off the top of his head. He remains unpredictable, and equity markets don’t do well with uncertainty.