What if 0% Tariffs Aren’t Good Enough?
Markets surge then lose gains … what is a good trade deal? … Trump might have bigger ambitions … the dangers with an alleged Trump plan … how to handle the volatility today
Though the gains have reversed and turned to losses as I write Tuesday afternoon, stocks ripped higher this morning on hopes that trade deals will be getting done.
From The Wall Street Journal:
Treasury Secretary Scott Bessent said the Trump administration was open to negotiating deals to reduce tariffs, and denied the market selloff had led the White House to change its approach…
“I would say the negotiations are a result of the massive inflow of inbound calls to come and negotiate,” he said…
“I think you’re going to see some very large countries with large trade deficits come forward very quickly,” he added. “If they come to the table with solid proposals, I think we can end up with some good deals.”
Here’s a question…
Vietnam has proposed lowering its tariffs to zero. Is that a “good deal”?
Not according to White House trade advisor Peter Navarro. Here was his response yesterday:
When they come to us and say, “we’ll go to zero tariffs,” that means nothing to us because it’s the nontariff cheating that matters.
It means “nothing”? Really?
Okay, here’s another question…
European Commission President Ursula von der Leyen suggested “zero-for-zero” tariffs with the U.S. for industrial goods, including cars.
Is that a “good deal?”
Apparently not. Here’s Newsweek:
Trump was asked whether [von der Leyen’s suggestion] was “enough” by a reporter in the Oval Office to which he replied:
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