Big Week in Trade…and Not China!

(Originally Posted May 20) The past week was nothing short of an emotional rollercoaster.  We began the week with a real U.S.-China trade war that sent markets reeling and reignited global economic growth worries.  Since we regularly discuss U.S.-China issues, we won’t dwell on it today except to say that this is a fight that President Trump clearly wants.  

Later in the week, we were delighted by the announcement of an agreement between the U.S., Canada, and Mexico that would end U.S. tariffs on imported steel and aluminum products.  More significantly, the deal clears the way for Canada to drop its own retaliatory duties against American agricultural products – for which powerful farm state lawmakers in Congress correctly blamed on the U.S. administration – and thus breathing new life into the USMCA.   

In any other administration – and at any other time – the above actions alone would easily qualify a whirlwind week leaving pundits and policymakers alike gasping for air.  However, in the Age of Trump, this is par for the course.  So, let’s not forget that during the same time (yes, it was only last week), the Administration formally banned Huawei and Chinese telecom companies from operating in America while also labeling European and Japanese automakers a threat to U.S. national security. 

Oh, and did you see the news about U.S. beef imports finally being allowed in Japan after 16 years? Wow…. We hope you had a restful weekend.