Following a breakfast meeting with the UK Prime Minister (PM) Johnson at the G7 Summit on Sunday, when asked by a Washington Post (WaPo) that if he had “second thoughts” about his tactics that led to the US-China trade escalation, the US President Trump said that yeah, sure why not. Might as well. Might as well. I have second thoughts about everything.”
Despite saying that he may have second thoughts on the trade spat, the US President showed no willingness to reverse the tariffs.
Trump said: “I think they respect the trade war,” about his G-7 allies, who have urged against their escalation. “It has to happen.”
Additional Headlines (via WaPo):
“Trump appeared to dramatically dial back his threat to force U.S. companies to stop doing business with China, something he had insisted he had the power to do despite international alarm.
The comments reflect Trump’s wildly shifting approach to China, which have had a major impact on the U.S. economy and could impact his reelection chances next year.”
Financial markets are expected to witness major gaps on Monday Asia open, in reaction to a full blown US-China trade war and the weekend developments at the G7 Summit. The safe-haven Yen, Swiss Franc and Gold are expected to extend Friday’s bullish momentum.