Politico reports South Dakota governor says Trump trade wars have 'devastated' the state

“South Dakota has been devastated by the trade wars that are going on,” Noem said at POLITICO’s State Solutions Conference, noting that agriculture is “by far” the largest industry in the state.

“The problem is that this has gone on now for a long period of time,” she said. “And farmers are used to risk, they’re used to prices going up and down and having that, but this sustained low commodity prices, frankly, is driving a lot of family businesses out of business. That is why we need to have some serious consideration for wrapping this up quickly.”

This is one of the reasons to expect a deal in March. The farm states have been clobbered.

I further expect Trump to brag about the "best trade deal in history". In practice, any deal may do little more than return to the status quo. Alternatively, the trade gap with China my close a bit but widen elsewhere.

With $1 trillion or more budget deficits as far as the eye can see coupled with the US dollar reserve currency status, it is unrealistic to expect Trump to close trade deficits no matter what China agrees to do on paper.

Mike "Mish" Shedlock