Trump Throws Market Into Chaos By Suggesting Trade Deal Could Wait a Year

U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019.

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.

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11 Comments

  1. Trump does not give a sh** about the farmers or anyone else, other than himself. He just wants to “win”, even if everyone else loses. Manufacturing in the US was down 0.6% last month, the worst in 10 years. He is not winning.

    • Paul, what a crock! PRESIDENT Trump has negotiated for the farmers and while Peloooooosi has let USMCA gather dust on her desk rather than submit it for a vote (certain to pass creating thousands of jobs and great product trade among the three nations) to allow PRESIDENT Trump another win, he succeeded in getting multi-millions for farmers, as well as giving them tax breaks and grants. USMCA has much about farming, as does the China deal. Currently, PRESIDENT Trump has negotiated with other countries for our farm products including Japan and several smaller countries. Please, do SOME research and stop posting tripe, Paul.

      • He LEFT OUT THE CATTLERAISERS ! DID NOT OFFER US A DAMNED THING ! Remember that FACT next time you want a steak ! Our trade as a whole is down 40% since we lost China.

    • Trump is sly like a fox! China is suffering far more than the US. Trump keeping pressure on for short term. Long term gain will b awesome for USA including farmers and Mfg.

    • If it’s all about Trump as Paul Williamson thinks, let’s hope he keeps going:
      1) Due to President Trump’s pro-growth policies, real gross domestic product (GDP) growth exceeded 3 percent over the last five quarters.
      2) Real GDP grew at annual rates of 3.4 percent in the third quarter of 2018 and 4.2 percent in the second quarter 2018.
      3) More than 5 million jobs have been created since President Trump’s election and the unemployment rate remains below 4 percent. (Prior to this year, the unemployment rate had fallen below 4 percent only five times since 1970.)
      4) The unemployment rate for African Americans in May fell to 5.9 percent, which is the lowest rate on record.
      5) Asian and Hispanic-American unemployment rates have reached record lows this year.
      6) Initial weekly jobless claims have hit a nearly 50-year low under President Trump.
      7) Under President Trump, job openings outnumber the unemployed for the first time on record.
      8) In recent months, workers have seen their largest nominal year over year wage growth in nearly a decade.
      9) African-American and Hispanic-American poverty rates reached record lows of 21.2 percent and 18.3 percent, respectively, in 2017.
      10) Consumer confidence has soared under President Trump, recently reaching an 18-year high.
      11) President Trump is delivering on his promise to bring back American manufacturing.
      12) The Small Business Administration lent approximately $500 million more in capital to women-owned businesses in 2017 compared to 2016.

      Deregulation:
      1) President Trump’s Administration surpassed the 2:1 ratio in 2018, eliminating 12 regulations for every new one in 2018.
      2) Since taking office, President Trump’s deregulation efforts have achieved $33 billion in regulatory savings.
      3) In 2018, these efforts alone delivered $23 billion in benefits to American families and business owners.
      4) President Trump signed an executive order to streamline the permitting process for infrastructure projects with a goal of cutting approval time from up to 10 years to an average of 2 years.

      Trade Deals:
      1) President Trump negotiated a new trade agreement between the United States, Canada, and Mexico to replace the disastrous and outdated North American Free Trade Agreement.
      2) USMCA will incentivize billions of dollars in auto and auto parts production in the United States and create a freer and fairer market for American agriculture.
      3) USMCA also includes the strongest-ever provisions on labor, environmental, digital, and intellectual property protections to reflect the realities of the 21st century economy.

      On a final note, USMCA did not garnish priority with Nancy Pelosi. Apparently the impeachment ‘inquiry’ was more important than ‘the strongest-ever provisions on labor, environmental, and intellectual property protection.’

      Do these actions help the President more than the American people? I think not.

  2. It’s a ploy! Tactics are everything! China needs some deals or they’ll have financial chos in several industries and regions! Wake up Paul! It’s how the game is played!

  3. Trump has demonstrated rather clearly that his actions, statements and behavior are very predictable and purposely planted. All of this “unpredictability” is timed with the 2020 elections clearly in mind. He is simply taking pages and tactics out of the (commercial) real estate developers’ playbooks that have proven for decades to work in order to get your way and what you want. You “take no prisoners.” It’s a brutal game. His current, most important project is to win in November, 2020. Therefore, he will make vote-capturing things happen within roughly three months of November that will be fresh in people’s minds and welcomed/applauded by as many voters as possible. Examples of those things are some sort of a trade deal with China, causing the stock market to be setting historic highs and immigration stats. All of the related statements, announcements, opinions and activities he has put out there up until now and will for the next few months are just “noise” to make some people think he doesn’t know what he’s doing. Then, when it really counts and is fresh in the minds of voters, he will “close the doors” with “authority” and “pound the table” with his accomplishments as voters go to the polls. That’s my take on the Trump situation. What is yours?

  4. Paul—You are full of B.S. Trump cares more for America than you or any other Demon-ocrat. He has created more jobs etc. than any other president and he will not back down to the Chinese, you or anyone else that tries not to MAGA!!!!!

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