[Ed. – Cat and mouse game could erode Trump support.]
The biggest reason for last week’s torrid stock market rally was rekindled “optimism” that the escalating trade war between the US and China may be on the verge of another ceasefire. …
However, that did not happen, and with no trade deal in sight, at 12:00 am on Sunday, the Trump administration slapped tariffs on $112 billion in Chinese imports, the latest escalation in a trade war that’s … given the market an alibi to keep rising because, wait for it, “a trade deal is imminent.”
Only, it isn’t, and 1 minute later, at 12:01 am EDT, China retaliated with higher tariffs being rolled out in stages on a total of about $75 billion of U.S. goods. The target list strikes at the heart of Trump’s political support — factories and farms across the Midwest and South at a time when the U.S. economy is showing signs of slowing down.