Did China just blink first?

 

"Yes, China did blink first. And good on them for doing it. Now we can cross this natty issue off the list. Let's get India, Japan and South Korea done now. It is nice living in the Golden Age of America. The Democrats should join us - they might like it."      

To paraphrase that wi-fi commercial, "The stock market is BOOMING"! Yes folks, just when the Democrats thought they could earn some points by saying Trump is sowing chaos into our market, the Chinese (on the verge of economic collapse), just blinked in our trade war. And just like that, the market futures (DOW), up over 800 points this morning. 

What just happened? Both sides agreed with the sky-high tariffs they were charging each other, trade became almost impossible. Ships were hitting out west coast from China, basically empty. It was hurting us but killing the Chinese. Why? Without our market to sell to, other markets are small in comparison. Chinese workers were out of work. Factories were idle. To keep the lid on, China wanted to have some honest trade talks. 

This is not a final deal, but it could or should turn out that way. It is a 90 day pause with both parties going back to a normal tariff. That would be 10% charged by both sides. In addition, so long as fentanyl keeps coming in from China, an additional 20% will be charged by the US. But things will change. We will still onshore many items that China has made for us - especially our meds. Also, this IP theft has GOT TO STOP. I look for new language in the new trade agreement which will address that issue. 

None of these issues would have even been addressed with China if Trump had not declared Liberation Day. That is a cold hard fact. We already have a great deal with the UK and are on the path to an excellent deal with China. It has been leaked out by the Trump team that this week we could see a hand full or more deals get settled. PLUS - our negotiator in chief is meeting with the Saudis this week. It will be interesting to see what Doanld Trump comes home with.

Now a word about Steve Witkoff. This guy, even though he is not involved in the trade negotiations, is involved in the real tough nation against nation negotiations. He was just in Russia meeting with Putin (again) to try and put some meat on the bones of a better and more reliable peace agreement in Ukraine. And he probably had something to do with getting our last American hostage released from Hamas. Oh, and he might have had something to do with getting the India-Pakistan dust up resolved.

I look at the team that Donald Trump has put together in every category this time around and am amazed. He got the best of the best and everyone is a perfect fit for the job assigned. Even Hegseth? Just ask the Houthis (what is left of them) about Hegseth. He bombed them into submission. No more attacking our ships in the Red Sea. But if they do, the non-stop bombing will continue. 

Yes, China did blink first. And good on them for doing it. Now we can cross this natty issue off the table. Let's get India, Japan and South Korea done now. It is nice living in the Golden Age of America. The Democrats should join us - they might like it.