The proposal also would be an interim deal, which would freeze the conflict, rather than bring a final resolution to a trade war that has cast a shadow over the global economy. U.S. stocks advanced on the news.
The plan reflects concerns within the White House over the recent escalation in tariffs and their economic impact on the U.S. going into an election year. Polls show the trade war is not popular with many voters and farmers are increasingly angry over depressed commodity prices.
The one thing any politician wants is to win re-election to prove that the first victory was not a mistake and to cement their legacy as a winner. If the USA enters a recession ahead of the election that greatly endangers President Trump’s re-election chances. The market has already reached that conclusion which is one of the primary reasons stocks have remained within striking distance of all-time highs over the summer.Click HERE to subscribe to Fuller Treacy Money Back to top