Since April 5, when Trump flipped out and ordered the USTR to consider whether it’s “appropriate” to propose an additional $100 billion in tariffs on Chinese imports, the general consensus seems to be that tensions have eased.
That’s probably inaccurate. What’s more likely is that the President has been too preoccupied with “gas killing animals” in Damascus, the “death” of attorney-client privilege, and “Slippery James” to worry about his “good friend” Xi who, incidentally, did his best to calm things down on the trade front with a conciliatory speech at the Boao Forum in Asia last week.
But there have been some hints over the past few days that Trump is refocusing on China and trade. For one thing, he accused the Chinese of “playing the currency devaluation game” in a tweet earlier this week, a bizarre accusation considering the yuan has risen for five consecutive quarters and considering the Treasury declined to label China a currency manipulator when they had the chance last Friday.
It’s also amusing that he would say that considering that America has seemingly adopted a weak dollar policy by proxy (Steve Mnuchin accidentally said as much in Davos earlier this year). If you want to talk about “playing the devaluation game”, maybe check on the greenback:
And if you’re wondering how the market feels about that, here’s the latest read