Yesterday President Trump postponed his new 10% tariffs on about half of the $300 billion of Chinese imports until December 15th ... mostly consumer goods. Many saw this as our president blinking and even the stock market was encouraged ... kind of like reverse English. But is this the right way of looking at things?
A chief Trump trade negotiator, Peter Navarro, was on the Fox Business Channel this morning and he explained why President Trump postponed these tariffs ... something that was not discussed at the time. The real reason was because many consumer goods companies had already negotiated the prices for their Christmas deliveries and had no opportunity to force down the prices in the Chinese yuan to offset these new tariffs.
Trump clearly did not blink.
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