Sneaky, Sneaky China…
Dear Rundown Reader,
China says they will not back down from Trump.
Many experts believe them too. The popular consensus is China will happily break before they bend.
We’ve also voiced this concern, asking how can you defeat someone who is so willing to sacrifice themselves?
We now have an answer.
In the wake of Trump’s no mercy approach, we’re seeing China’s more rational than previously thought.
Today’s Rundown reveals China’s sneaky concession, and shows you why it’s as much a win for them as it is for Trump.
Your Rundown for Friday, August 10, 2018…
Big Win for Trump; U.S. Oil… And China?
Trump’s trade war is escalating faster and faster.
Starting August 23, the U.S. will raise duties on $16 billion in Chinese goods to 25%.
In retaliation China announced its new round of tariffs, also increasing duties on $16 billion in U.S. goods to 25%.
Business Insider notes, China’s new duties will focus on “energy products, like coal, as well as large items like cars,” the report states.
But one big ticket item was mysteriously left off China’s list.
This morning The Wall Street Journal reported, China has dropped U.S. crude off its tariff list.
Oil was one of the first U.S. exports they targeted. The reversal here is a win for Trump. And Big Oil.
But it’s also a win for China.
The U.S. is literally fueling China’s growth, supplying a fifth of all our oil to China over the past two years, as reported by The Journal.
China is making the most rational decision for self-preservation.
They need our oil.
And while Trump continues to put on the pressure, they know this concession will bolster their defense against Trump in other areas of the trade war.
Big win for Trump and U.S. crude.
But also a smart move for China. Because they know in the long run it’s about winning the war, not a battle.
Now, turning to the markets this morning…
Market Rundown for Fri., August 10
S&P 500 futures are down 12.25 to 2,841.
Oil’s up slightly to $67.16.
Gold’s down $1.70 to $1,218. Gold is almost as boring as Treasury bonds right now.
Bitcoin goes for $6,308 this morning, according to CoinDesk.
We’ll talk again on Monday. Have a great weekend.
For the Rundown,