China Morning Missive

Color me skeptical in regards to the news just out that Trump and Xi are now set to met in person in early May. Then again, the triple digit tariffs on all Chinese imports to America may already be having a material (negative) impact on the American economy.

What is known is that Sec Bessent held a private meeting with JP Morgan clients and stated that a deal with #China was in the making. See news story linked below.

I am not a believer in coincidence. This commentary from Bessent comes a single day after a White House meeting with the CEOs of Walmart, Costco and Target. Each of the companies has made the pilgrimage to China over the past month in an attempt to have their suppliers “eat” the Trump tariffs. In each case, the Chinese suppliers simply said “no”.

Inventories are being drawn down and the risk isn’t just higher prices, but stores that have vastly less on offer. The shelves are at risk to being bare.

Like I said on CNBC yesterday. Trump has already flinched. He appears to be doing so once again.