We are fairly certain China trade talks are hung up on a rollback (China wants) of some of the tariffs and the bigger issues of structural changes to China’s economy and IP protection (U.S. wants).    Trump looks weak if he rolls back tariffs without getting anything big and not just a commitment by China to buy more soybeans.

It looks like a standoff.  Watch the December 15th tariff deadline.

Then Trump targets Brazil and Argentina, which is kind of unfair and irrational as these countries are trying to ease the slide in their currencies by selling dollars.   If market forces determined these exchange rates, the dollar would be much stronger in both pairs.

Just when you think President Trump has reached a moment of trade equilibrium, there he goes again. Mount Tariff erupted once more Monday morning in tweets announcing tariffs on Brazilian and Argentine steel that dampened hope for election-year economic calm.

“Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers,” the President tweeted. “Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.” — WSJ