UC Merced Associate Professor of Economics Greg Wright says he believes this is a step in the right direction.
“President Trump has softened his stance on the China trade war, which is good news, I think,” he said. “I think that there is something going on here that is about negotiation and what type of deal they can get from China.”
He says the U.S. consumers are feeling unsure about what the future holds for tariffs.
“The back and forth, I think, is the main issue that investors are having at the moment, is just the level of uncertainty. And I think probably what the administration could do is they could just explain exactly what the objective is. So, on the one hand, we know that part of the objective is just to negotiate better deals with our trading partners, and that seems perfectly fine. But at the same time, it’s not exactly clear what deals the administration is looking to meet. What is it that exactly the administration wants from China,” Wright said. “That’s probably the thing that’s going to kind of linger in the markets and linger in terms of the investment decisions that firms are thinking about making or not making. And consumer sentiment as well.”
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