Trade talks are now "Back on Track", with New Tariffs on Hold,
Q. What happened?
A. Trump caved in.
What "Track" is Back?
- Trump offered China no new tariffs.
- Trump agreed to easing restrictions on tech company Huawei.
- The above two points were part of China's Preconditions, which Lawrence Kudlow said did not exist.
- China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.
- No deadline was set for progress on a deal.
- No details on China's farm purchases.
Right Back On Track
“We’re right back on track,” Trump told reporters after an 80-minute meeting with Chinese President Xi Jinping at a summit of leaders of the Group of 20 (G20) major economies in Osaka, Japan.
“We’re holding back on tariffs and they’re going to buy farm products,” Trump said, without giving details about the purchases.
Trump said the U.S. Commerce Department would study in the next few days whether to take Huawei off the list of firms banned from buying components and technology from U.S. companies without government approval.
Questions of the Day
- If that's not back on track, what is?
- But what track are we on?
Once again Trump made a bluff that everyone in the world could see (except his supporters), then backed down when the other side held firm.
Kudlow said yesterday that "Trump is perfectly happy where we are."
Why deal when you are perfectly happy, not dealing?
What can be better than perfect?
Speaking of the Wall Street Journal report on China's preconditions, , Kudlow said "I don't know where those stories comer from, but it is fake news".
Cave-In on Preconditions
Let's not call this a cave in on preconditions because clearly there were none.
Let's instead call this a banana split.
Mike "Mish" Shedlock