Goldman Sachs on the US delay to China tariffs
GS cite two reasons. The first one I'm not so convinced …. the second one though, yep:
- We believe the decision to delay implementation of tariffs on some goods was driven by concerns over the political risks associated with imposing tariffs on consumer goods before the holiday season as well as the recent deterioration in the US equity market
- To the extent that this is what drove the decision, this suggests that there is a limit to how far, or at least how quickly, the White House might escalate trade restrictions
- announcement appears to provide incremental (and market-friendly) information as to how the White House is approaching trade policy, we do not believe it represents a substantial shift in the US-China dispute
Key take way from all this, IMO …. are the two bolded parts above. I would point out that the US announcement was stock market bullish but y'all know that!