This morning, the White House announced that trade talks with China continue, albeit at a staff level. This came after a flurry of reports that Trump is planning to unilaterally ramp back the embargo-level tariffs he imposed on China earlier this month, advance notice that cheered Wall Street. Then Chinese officials said that the White House is wrong. There actually are no talks. And Trump must take the first step, unilaterally undoing the tariffs he had already imposed.
He appears set to do just that.
This comes just three days after the CEOs of Walmart, Target and Home Depot met with Trump at the White House and reportedly told him that his tariffs would result in empty shelves and product shortages in as little as two weeks.
All of this is, to put it mildly, a humiliating climb down for the President. He upended the global economy and seems to have massively damaged the perception of American assets as a safe haven during times of economic uncertainty. The goal was to go toe-to-toe with China and see China blink. But it’s the U.S. that’s blinking. And that’s after the earlier reciprocal tariffs blink that already happened.