White House trade advisor Navarro is speaking on Fox news and says:
- The markets view trade letters as part of negotiations
- Apple thinks it is too big to tariff.
- Fed should have cut rates in July.
The strategy has shifted from the long tedious trade negotiations to a view that countries that export to the US, need to pay an entrance fee and also need to pay back from “unfair trade practices”. Ninety deals in 90-days idea did not work.
Regarding Apple, the administration will bash the home team and with tariffs likely to increase, I would expect more pressure on US corporations to foot the bill by reducing costs and not passing on higher costs from the tariffs to consumers. That comes at the expense of margins/profits and jobs as a result.
This article was written by Greg Michalowski at www.forexlive.com.