Trump Blinks, Retreats On Tariffs, Fed Chair Tough Talk

 

The six times bankrupted buffoon who convinced millions of credulous voters that he was a business genius blinked then retreated in his tariff war and war on the Fed chair.  From Investor's Business Daily:

President Donald Trump's comments on Tuesday that he won't fire Federal Reserve Chairman Jerome Powell and that he intends to significantly lower 145% tariffs on Chinese imports sent a message that he's done shooting himself — and U.S. financial assets — in the foot. That good news has the S&P 500 surging early Wednesday, building on yesterday's bounce that got an assist from Treasury Secretary Scott Bessent talking up prospects of a China trade deal.  [snip]

Wednesday's climbdown by Trump was his third such move in the past two weeks. First, after the S&P 500 fell into bear market territory, Trump announced a 90-day pause on reciprocal tariffs above 10%, except in the case of China. Then he exempted Apple (AAPL) iPhones and other electronics shipped from China from all but a 20% tariff. Yet those two concessions failed to stem a broad-based sell-off of U.S. financial assets, with the dollar falling and 10-year Treasury yield rising even as the S&P 500 skidded lower. Trump's comments on Monday calling Fed Chair Powell a "major loser" added fuel to the fire. [snip]

Trump did his part after Tuesday's close, taking any implicit threat to fire Powell off the table and talking up prospects of a deal with China. Yet there are a few reasons not to get excited about the possibility of a breakthrough with Beijing. First, Bessent said that negotiations with China, which don't seem to have started, are likely to be "a slog." Second, Trump didn't give Beijing a particularly gracious invitation to come to the table.

"Ultimately, they have to make a deal because otherwise they're not going to be able to deal in the United States," Trump said. "If they don't make a deal, we'll set the deal."...

Sadly for the business genius Malignant Fascist, the Chinese are in no mood to succumb to his ham-handed extortion-by-tariffs:

China rejected US trade overtures Thursday, demanding all tariffs be lifted and denying any progress in talks. “The US should... thoroughly remove all unilateral tariffs... if it really wants to solve the problem,” said Commerce Ministry spokesman He Yadong, calling reports of ongoing negotiations “groundless.”

Separately, China’s central bank governor Pan Gongsheng warned that global tensions could lead to “high friction, low trust,” urging stronger international cooperation as US-China talks remain stalled despite Trump’s softer rhetoric on tariffs.

Stocks slipped Thursday after a surge the day before, fueled by hopes of easing trade tensions with China. On Wednesday, Treasury Secretary Scott Bessent denied a report that the White House may unilaterally cut tariffs, stressing that both sides must act. “This is the equivalent of an embargo,” he said, adding that current tariff levels aren't sustainable.

President Trump had hinted at a trade-war deescalation with China on Tuesday, saying of the tariff levels: "145% is too high. It will come down substantially."

He said he was optimistic about trade talks, adding that he plans to be "very nice" to China to reach a deal...

We trust the European Union will also be emboldened to stand up to the extortionist.

That retreat followed a warning by CEOs of Walmart, Target, and Home Depot delivered to the MF on Monday that his tariffs, especially on China, would "empty the shelves" of their stores, hence the hint that tariffs on China would "come down substantially" (and if you believe he has a plan or knows what he's doing, well bless your heart!).

The MF illustrates the saying, "if you can't spot the sucker at the table, you are the sucker."  Also illustrative of the saying are the sharp minds on Wall Street that take the MF and his minders' words seriously, jerking the stock market up or down depending on the latest frantic pronouncement.

Meanwhile, the MF continues his retreat:

President Trump, in his latest tariff walk back, is set to exempt automakers from some of the "most onerous" tariffs they face...

Ford (F), GM (GM), and Tesla (TSLA) were among the auto stocks that rose in after-hours trading after the FT report.

He's also facing a lawsuit from a dozen States challenging his legal authority to levy tariffs:

A dozen states sued the Trump administration in the U.S. Court of International Trade in New York on Wednesday to stop its tariff policy, saying it is unlawful and has brought chaos to the American economy.

The lawsuit said the policy put in place by President Donald Trump has been subject to his “whims rather than the sound exercise of lawful authority.”

It challenged Trump’s claim that he could arbitrarily impose tariffs based on the International Emergency Economic Powers Act. The suit asks the court to declare the tariffs to be illegal, and to block government agencies and its officers from enforcing them.

A message sent to the Justice Department for comment was not immediately returned.

The states listed as plaintiffs in the lawsuit were Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont...

(BTW, where's California?  Washington State?  Maryland?)

The lesson some are learning from all of this is that when you're faced with a bully, especially a stupid one, it's best to stand up and put up a fight because they generally fold like a cheap suit.

(Image:  Wired staff/ Getty Images)