I think you underestimate Dump Dump (Dxxxxd Txxxxp). He'd do whatever people think he wouldn't do. I recall a guy in Taiwan called Li Ao (李傲), sorry that he has passed away. In his TV program, he said about Chen Shui Bian (陈水扁):There's a type of animal, if you stand behind it, it will kick you and that's a donkey. There's a type of people, if you stand in front of him, he will kick you and that is Chen Shui Bian. Here I'd change that type of people to Dump Dump.
Donald Trump will not restart the trade with China. No one believes that. The US stock markets closed at an all time high again. Why is the American market going up? Because everyone knows the US-China trade is over.
We must remember what happened.
1. The US economy contracted in the 1st qrt because of all the trade war threats.
2. After Liberation Day, and the tit-for-tat, an trade embargo between the two countries was in effect.
3. The bond market collapsed that week in the US. They said it stopped functioning. All this means that if these issues were not resolved, we were looking at another credit collapse and a 2008 style type of meltdown.
4.. Container ships were empty. There was no goods coming to America from China. This means no retail sales, which means the US economy will contract in the 2nd qrt, giving them a recession as defined in the textbook ECO-101.
Trump was finished if he did not change his position or course correct, haha! He was finished. A recession, and financial panic, all because of Liberation Day. What a goof-ball president. That was so funny!
Trump only had a week or ten days to unscrew what he screwed up.
Politically, Trump was finished if he could not stop the financial panic from spreading (which would have caused a deep recession), and he was finished if the economy contracted for another quarter because there appeared to be no goods on the shelves.
Now, there was a curious point, that some suggested that the Chinese might not pick up the phone if Trump called Xi. Remember back in 1989 the 6.4 incident? Okay if you don't, we just got to know that after relations improved, there was a hot-line install. When 6.4 happened, the Americans called the Chinese and the Chinese refused to pick up the line. What was interesting, the Russians or Soviets, later said the same thing, they called, but no one answered.
That was the events of the month of April.
Let's sum this up.
1. Financial panic ---> recession
2. 100% tariffs is a trade embargo ---> recession
3. The American believed the Chinese would not retaliate, but they did, then the Americans believed the Chinese would, but they never called. At this point, no one really knew. What if the Chinese did not want to deal with the Americans anymore? Once there is a trade embargo in place, history tells us what is next and that always usually gets worst.
So what did Trump do?
1. He rolled back the tariffs on everybody except China. This calmed the financial markets and averted that crisis.
2. He still had to make some sort of peace or truce with the Chinese, and it became a battle of wills, where in the end, Trump had no choice but to relent and make that call. No container ships coming meant a recession is a sure thing, and Trump will pay for that at the ballot box in the mid-term elections.
This is why the US-China trade war will not start up again. Goods from China, and capital goods from China, are from China! American industry needs that stuff. With a total trade embargo, guess which side will see production stop.
Then we remember that after the tariffs were at 100%, the Chinese side also announced the rare earths export regime. No rare earths means no production.
We should not have any illusions here, as the real world is a hard tough place. It is not in American interests to start the trade war again with China, because it will collapse the economy and be political suicide for Donald Trump and the Republican Party.
That we can bet on with full confidence. That Donald Trump will try to save himself first. We saw that with the events in April. We seeing that again with the events in August surrounding the Epstein files again.
Always something.