Trump Folds:

[danmand]

Trump Folds: Offers To Cancel New Tariffs, Will Cut Existing Tariffs By 50% In Exchange For Pledges

Thu, 12/12/2019 - 10:09

And just like that, confirming weeks of media speculation, Trump has folded with the Dow Jones/WSJ reporting that not only will Trump not impose the new tariffs set to come into effect on Dec 15, but will cut existing tariffs by up to 50%.

U.S. Negotiators Offer to Cut Existing Tariff Rates by up to 50% on $360 Billion of Chinese Imports - Sources
U.S. Negotiators Also Offer to Cancel New China Tariffs Set to Take Effect on Dec. 15 - sources
U.S. Tariff Offer Made in Recent Days as Both Sides Seek Trade Deal - Sources
President Trump will Hold Meeting Thursday to Discuss China Trade - Sources\
So what does Trump get in return for folding like a cheap chair? Why pledges to buy more agri products, pledges which apparently are not even enforceable as they are merely "firm commitments", in other words taking China for its word:

U.S. Asking China For Firm Commitments on Increased U.S. Products - Sources
U.S. Would Reimpose Original Tariff Level if China Fails to Carry Out Pledges

 

[Frankfooter]

He must be desperate for a distraction from being impeached.

 

[HungSowel]

I am expecting china to announce that it is opening up investigations into Hunter Biden and that they were behind the DNC server hack.

 

[Valcazar]

He may have gotten a political favor like that, but I figure it more likely he got some trademark deals or a promise for a hotel or something. He is only a bad negotiator if you think he was supposed to make a good deal overall. If the idea is to get himself something he is quite good, especially when he can use someone else's money. So he costs the US about 40 billion with tariffs and gets a promise that China will buy 29 billion more in the future, but scores himself a personal deal behind the scenes. He didn't pay that 11 billion, so he comes out ahead. (Especially if you figure he has been in on those mysterious trades on the market ahead of his announcements in the past)

 

[WyattEarp]

I wonder if prices will go down with the unwinding of the tariffs. We had such a terrible run-up of prices during the trade war.