Update on Tariffs and Trade with China: Mind the Gap

• China’s swift response of proposed tariffs puts the ball back in President Trump’s court 

• The fundamental disconnect of who is the instigator makes negotiations difficult 

• Base case is that cooler, economically motivated heads prevail 

• The pessimistic scenario would be a “bigger button” approach by the U.S. and more digging in on both sides 

• China’s swift response has potential to accelerate the negotiation timeline 

• Broader (negative) implications beyond trade if these frictions escalate and are drawn out

Download and read the Current Market News for more information.