We have a trade deal! Should we pop the champagne corks? If so, we better hurry. Maybe this deal will develop into something worth celebrating. But it’s not there yet.
If so, we better hurry. The Trump administration wants to slam 100% tariffs on French champagne—retaliation for France’s new digital services tax. But China is the biggest, and last week the Trump administration said it had reached a “Phase 1” agreement with China. The president postponed a new round of tariffs that would have taken effect Dec. 15.
If you’re a CEO or CFO, and you have no idea what your cost structure will look like a year from now, you would be foolish to invest in new machinery or train a bunch of new workers. Not being fools, they have grown reluctant to do those things. This reduces US growth. Well, you might start by giving everyone as many specific details as possible. If the full text isn’t ready, you reveal as much as you can.
We should also note that US taxpayers have spent billions helping affected farmers. Simply returning exports to prior levels doesn’t reimburse the taxpayers, nor does it repay what farmers already lost. That might be a legend, but the term fits. You build a Potemkin village when you want people to see something that isn’t actually there—for instance, the false building facades used to make films or TV shows.
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