President Trump Dismisses Reports of China Tariff Rollback…

As we warned yesterday, about taking the propaganda of the Beijing panda mask…

Well, today President Trump pummels that narrative when he was asked about it during an impromptu press conference at the White House:

Q On China, can you tell me whether a tariff rollback will be part of the phase-one China deal?

THE PRESIDENT: Well, they’d like to have a rollback. I haven’t agreed to anything. China would like to get somewhat of a rollback — not a complete rollback, because they know I won’t do it.

But we’re getting along very well with China. They want to make a deal. Frankly, they want to make a deal a lot more than I do. I’m very happy right now. We’re taking in billions of dollars. I’m very happy. China would like to make a deal much more than I would. (link)

[…]  Q Have you figured out where you’re going to sign the phase-one trade deal yet? Do you have a location yet?

THE PRESIDENT: Well, we’re looking at different — assuming we get it. You know, I never like to talk about things until we have them. But it could be Iowa or farm country or someplace like that. It will be in our country, but it could be — it could be someplace like that, John.

Q Mar-a-Lago?

THE PRESIDENT: No, I don’t think so. I think we’d go more in the farm belt.

[…] Q Do you have a date yet — do you have date yet, sir, for your meeting with Xi Jinping? Is it definitely going to be this year?

THE PRESIDENT: We’ll see what happens. Okay? We’ll see what happens. We’re getting along very well. They want to make the deal far more than I do. I will tell you, they want to make it far more than I do, but we’ll see what happens.

We’re taking in, right now — and you know — as a reporter of finance, you know what I’m saying. They’ve devalued their currency and they ate this tariff. We’re taking in billions of dollars in tariff money from China. I like our situation very much. They want to make a deal much more than I do, but we could have a deal.

Beijing is proposing acceptance of U.S. demands, but only if that acceptance also delivers a removal of the tariffs that created their diminished status.

USTR Lighthizer isn’t stupid, he’s not going to give back two-years of hard won position.

While they hate it, Beijing internally also understands the U.S. position, this is why they consider Trump such a formidable adversary.

So the latest position from Beijing is to say “a phased reduction in tariffs”, in exchange for a “phased acceptance” of terms.  From the Chinese position, they view this as their version of how they project the Western mindset of win-win into the negotiations.

None of the principals can say this directly; to make such an admission would be akin to losing face amid a history of thousands of years of specific Chinese strategy.  So they send out spokespersons to promote such a proposal.

Anyone who has an understanding of the Chinese outlook should take all of the media reporting on this with a grain-of-salt.  Beijing uses spokespersons as panda masks, and Team Trump know the distance between the Chinese principal and a Chinese spokesperson is part of their strategy.  The unspoken space between words is more important than the words themselves.  Inside this space is where cunning exists.

Regardless of the proposal, if it doesn’t come directly from a principal it doesn’t exist…. it is a false promise, or more panda mask.

This is what happened when the May 2019 talks collapsed.

Special trade envoy of Chairman Xi, Vice-Premier Liu He, quickly turned from a principal to a panda mask as soon as Beijing weighed in -and rebuked- Liu He’s negotiated terms.

Vice-Premier Liu He was stripped of his “special envoy” designation; and Beijing used the distance they just created with He as the justification for dismissing the May ’19 terms of agreement.  That example was very typically Chinese.

The point is, Beijing does not want to accept any new terms that diminishes their prior one-sided benefit.  China is communist, they don’t have a direct constituent group they are accountable to…. they are willing to incur suffering so long as they don’t lose position.

Losing less is not considered a position of benefit.  China cannot even contemplate such a position; it just isn’t done.  So any and all reporting on the discussions should be viewed through the prism that any deal is almost impossible to assemble unless, somehow, Beijing can view a deal as a win.   That is a deal President Trump is not going to accept.

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This entry was posted in Big Government, China, Donald Trump, Economy, Legislation, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

39 Responses to President Trump Dismisses Reports of China Tariff Rollback…

  1. scrap1ron says:

    Let them starve, Mr. President. We need nothing from communists.

    Liked by 9 people

    • VoteAllIncumbantsOut says:

      As a trader, here’s what’s been happening.

      It’s seems a continuous pattern that we deal with in the markets, news reports Trade is on, then the truth comes out. We’ve all heard the saying, “Buy the rumor, sell the news”. Traders here it constantly.

      So, this is how things have shifted.
      Usually what transpires is just what one would would think, market goes up on the rumor and then falls on the news but they’ve switched the psychology around. So, traders know these scenario inside and out, it’s a given. What the big boys do, because they know this as well, is when the rumor hits, they’re waiting for the rise to collapse and when it does, the big boys start the ball rolling and when they trigger enough buy stops they immediately reverse back to a long position triggering the sell stops on the way up, it’s a planned “Short Squeeze”. I deal with it all the time.

      Take a look at the Dow, S&P or NASDAQ on a lower time frame chart 5, 15, 30 minute for the past few days, you’ll understand what I mean.

      The news comes out that there is no trade deal yet or like today for instance and yet the markets make new highs and continue to go higher, why?

      Look and the REPO markets, banks globally are in trouble and this why the FED is lowering rates and because of this, investors from around the Globe are moving into equities here in the USA.

      This is important to know…. Right now the markets have continued climbing and we should see a pullback possibly this month but it won’t be much, I’m looking around 3020 on the S&P and after that, we will take off again to new highs most likely into 3300, then, we should see a decent fall from there.

      The trade deal for the farmers is good but an impeachment vote from the House of Representatives will drive the decline. Watch the gold stocks, right now they are declining but when the confidence in government collapse you’ll see the metals make a beautiful up. I don’t trade metals but I know markets and everything is globally connected. Europe will kick things off first and then we domino from there but the USA is only going to be effected to a minor degree, we are holding up the global economy because of POTUS.

      Everything is connected, this is why Europe needs Britain as well as Germany needing Britain. Britain however needs to leave but I’m afraid this will not happen, just like China will not agree to any negative trade deals that effect them.

      We are headed for a global monetary reset and crypto currencies will never be allowed to survive unless a government has full control over it!

      We are moving in this direction of course but it has everything to do with taxes because you can’t hide it. The future is not hard to see when you know the past. Just look at the younger generation, they have know idea what freedom truly means and the will easily be drawn to these technological advances without batting an eye.

      Liked by 4 people

      • VoteAllIncumbantsOut says:

        I want to add something here…

        We are poised to go higher on Monday because psychologically 3100 is an important level on the S&P and quite possibly we hit 3120 area and then pullback to test support around 3020 area.

        Every trade I take is a waiting game so I’m not advising anyone to go long or short at these levels I’m merely pointing out how markets react to certain areas and how the media along with the big boys can move markets on a daily basis but not long term, they control nothing, this is why the media is so important to how markets react. Your 10,000 shares or 10 contracts does nothing to move markets. This would be like 10,000 people standing on the beach trying to stop a big wave from crashing, ain’t gonna happen.

        Not one soul in government will ever talk the markets down that ain’t going to happen even if and when we’re falling down.

        Always ask yourself this question…
        “If the news is so bad or good, then why do the markets not continue to fall or rise further, if it’s bad news, why did we stop and start to go up or if it’s good news, why to we stop and start to go down”?

        It’s takes energy (money) to drive a market up, it takes no effort to fall!

        Liked by 6 people

      • Jedi9 says:

        Good stuff! Totally in synch with what you just articulated! Do you have any insights on currency pairs in the FX markets? What pairs other than EURO/USD is a good indicator?

        Like

  2. frank field says:

    I am officially an Ever Trumper. 😜

    Trump for Rushmore

    Liked by 15 people

  3. MLK says:

    More Panda Mask propaganda trying to help out their Democrat/UniParty allies:

    https://www.zerohedge.com/geopolitical/chinas-top-trade-negotiator-we-want-trump-get-re-elected

    Liked by 1 person

  4. Skidroe says:

    Leave things the way they are or increase the tariffs for the next 5 years. We will take in lots of cash. Can NOT trust them anyway.

    Liked by 4 people

  5. oldersoul says:

    PDJT also said something else today at this presser. Something quite noteworthy:

    “I caught the swamp. I caught them all. Let’s see what happens. Nobody else could have done it but me.”

    Liked by 15 people

    • oldersoul says:

      And yesterday, Dan Scavino tweeted this:

      When a media jockey does this, it gets the appropriate skepticism.

      But when the President’s own online comms director does it, that is new ground.

      Liked by 6 people

      • Robert Smith says:

        Now they’re just messing with the other side. 🙂

        Liked by 2 people

      • Sentient says:

        If indictments are filed, they better not be filed in D.C.

        Liked by 2 people

        • Daniel M. Camac says:

          Sentient, That’s for sure. Wasn’t that the reason everyone got giddy when Sessions appointed Huber from Utah to start things up? I’m a retired scientist not an attorney but I thought that allowed jurisdiction outside the DC Cesspool.

          I’d like to see Ristvan’s thoughts on this.

          By the way, I was in Long Island last weekend (Brooklyn, Massapequa) and found lots of Patriots there. One was even visiting from southern CA but he was more than aware of the
          Damnocratic BS.

          Liked by 1 person

    • Dutchman says:

      Actually, I thought his “I’m kicking their ass!” was notworthy,…memorable,..and CLASSIC ‘Trump’!

      Keep kicking their Ass, Mr. President, we’re with you ALL the way!

      I too, am an ‘EverTrumper’, although I think Mt. Rushmore is fine the way it is; President Trump needs his OWN mountain. Mt. Trump.

      Liked by 3 people

  6. ABN says:

    Agree, this was a very big statement. “I caught all of them.” Love it! Most optimistic signal we have gotten thus far from anyone in the inner circle. And coming from PDJT himself also the strongest and most credible.

    Liked by 6 people

  7. L4grasshopper says:

    The tariffs are to get the Commies to change….not to get them to PROMISE to change.

    Stay firm Mr. President!

    Liked by 7 people

    • Dutchman says:

      No, the tariffs are NOT to “get the commies to change”, as they will NEVER “change”, unless you mean relinquishing power, collapsing, being run off or killed by their own people,….THAT kind of “change”? Sure.

      But start ‘playing by the rules’? Never.

      Its like expecting Michael Corleone to relinquish his vast criminal enterprise, and become an honest businessman;
      It AIN’T gonna happen.

      The mere idea that the markets are going up or,down, based on the perception of a possible “Trade deal” between PDJT and China, is hillarious.

      Its like betting on when a Unicorn is going to be ridden by a leprocaun, on wall street. Uh,….never.

      Liked by 2 people

  8. MD says:

    China’s still sitting and waiting for Trump to be impeached or not be re-elected. In twelve months they will have run out of resources (US dollars) and we will still be doing just fine. I wish we could see their reaction on election night 2020.

    Liked by 3 people

  9. alonzo1956 says:

    We need to decouple our economy from China’s. The world has turned a blind eye to the MANY sins of the Chinese Communist Party. They are using the profits from American Capitalism to build an authoritarian regime meant to destroy Capitalism, which should be evident to everybody. Their social credit policy. organ harvesting of political dissenters and throwing the Uighurs in concentration camps should be condemned by the world, rather than being accepted as is the current situation. The world’s thirst for cheap trinkets will be the demise of freedoms on several fronts if we do not change our ways.

    Liked by 5 people

  10. trapper says:

    Cue grumpy pouty panda.

    Liked by 1 person

  11. Janice says:

    Keep praying for our President and his terrific Cabinet!

    Like

    • Daniel M. Camac says:

      I do it everyday, twice on Sunday. Ok, I’m gonna burn for that last part. But seriously, from a man who was raised Wesleyan Methodist, dabbled in other religions and found a liking to Gnostic teachings, I’m still on the fence. But one thing I do believe is that there is a higher power, an omnipotent source that is good and there is one that is evil. That’s why I pray. We’ll all find out someday, that I can assure you. Haha.

      Like

  12. iswhatitis says:

    The longer it is before there’s any “deal” with China, the more masks that will fall off the faces of bought-and-sold USA “politicians”.

    I consider that a good thing… 🙂

    Liked by 2 people

  13. MVW says:

    Sundance,
    Thank you…………!!!
    re:
    “As we warned yesterday, about taking the propaganda of the Beijing panda mask…”
    &
    “Beijing is proposing acceptance of U.S. demands, but only if that acceptance also delivers a removal of the tariffs that created their diminished status.
    USTR Lighthizer isn’t stupid, he’s not going to give back two-years of hard won position.”

    Every time it looks like a deal is done China plays their crooked game and leaves it. But this is Trump they are dealing with and this is a game of quicksand in which the more China struggles the more they sink. Tariffs.

    China is buying farm products ONLY because they have no choice, they must have the products to eat. This so called deal is smoke cover so China can save face so they can buy the farm products and not charge their own tariffs on them. China’s Ag is in dire straights and with the GSM cycle it will get worse.

    Liked by 1 person

  14. If Wall Street is going to all time highs because they think that there will be a deal with China, then they would be total idiots. There will be no significant deal with China while President Trump is in office.

    The truth is that not they are not idiots, and they know that the tariffs and holding back China are good for our economy and for American companies. The real reason the market keeps going up? The big investors know that it’s “America First” time for the first time in 30 years.

    Like

  15. John-Y128 says:

    Our MSM working for their Chinese partners, love to imply PDJT would cave on his own principles, what complete jerks. Everyone knows China isn’t going to agree to anything until after the 2020 elections, hope for an election of an CoC establishment weasel, someone they can payoff.

    Like

  16. dufrst says:

    Honestly, Trump gets Phase 1 deal, he’s already won from his perspective and no other phases will be necessary. Think about what he got. He got intellectual property protections, access for financial service firms to Chinese markets and increase farm purchases beyond what our farmers can currently produce. All of this done with an enforcement mechanism in exchange for not imposing additional tariffs.

    Currently there are 25% tariffs on first tranche and 10% tariffs on second tranche ( let’s call this Apple products). The threat was to raise the 1st tranche to 30% and the second to 15%. The effect would be a collapse in new US investment in China and the relocation of US supply chains out of China.

    The US only needs in a trade deal with China everything in Phase 1, while retaining the rest of the tariffs for enforceability and to allow US firms to relocate over time. If those remaining tariffs are to be removed, I believe Trump is angling for a deal on North Korea. He wants complete denuclearization.

    Again, we got everything we want in Phase 1. The rest is not necessary or vital to our economy as much as covering agricultural, intellectual property (tech), and finance. The first tranche tariffs actually benefits our economy (service) in that we get the cheap goods for our retail and entrepreneurs. Trading that off for a real deal on North Korea would be worth it. Don’t be surprised if/when Phase 1 is concluded that a deal with Kim Jong Un is completed shortly thereafter.

    The brilliance of this entire negotiation by President Trump is truly extraordinary. Mount Rushmore can not wait if he pulls it off!
    (BTW, Dems and the impeachment are a last ditched effort to prevent this accomplishment but it will fail!) MAGA!!

    Liked by 1 person

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