It takes two to Tango. It is inevitable in any business relationship would be necessary at least two parties understand each other for a common purpose, especially they intend to understand each other, which is not so clear in the eyes of investors. Yes, there is some desire to control the damage that can be extraordinary from an escalation of conflict between the world’s two largest economies and powers, but it is important to remember that trade is just one of those things on the table, although it is fundamental, it is not by itself the most important.
Photo by Darren Halstead B.
That is why, as I have been saying in recent months this soap opera between Trump and Xi will hardly come to an end this year and it is not even guaranteed to end before the US presidential elections of 2020, because if there is an agreement that would be job done for Trump and he could use in the campaign, the current president’s modus operandi is more than trying to win votes for the confrontation, so showing that it is tough on those who “attack” US companies, as he says, could be an even more interesting motto in your view.
In conclusion, whatever the course of events in the coming months, it is prudent not to put all the chips in one basket that is appease the situation of the topic of trade war in the short to medium term, instead, take advantage of the variations it provides.
