This morning, Andy sat down with Stuart Varney to discuss the potential of a US-China trade deal and Andy’s latest opinion piece titled, “Thanks to Trump, China’s Economy is Rapidly Decelerating — Here’s What Could Happen Next.”
Stuart kicked-off the segment highlighting Andy’s point that President Trump has given the U.S. huge leverage over China because while our economy is doing great, their economy is suffering badly. After discussing the economic pressure President Xi is getting from various sources within China, Andy explains that, “the problem isn’t that China won’t negotiate – I think they will negotiate - the big problem is, how do we trust them?” Andy pointed to past instances when China agreed to things and didn’t follow through and added, “they want to negotiate, but we have to be able to enforce.”
When asked what would happen if there is no deal – and how it would impact the stock market and the economy, Andy commented, “…the stock market could go down since it can react emotionally...” But he also pointed to what Fed Chairman Powell has said in the past, “this trade war really isn’t having much of an effect on the American economy.” Andy added, “Even if you took all the tariffs they are talking about imposing, the impact to the economy would be small…President Trump needs this politically…I think it’s important for the stock market, but I don't think it’s as big a threat to our economy as it is to the Chinese economy.”
Stuart concluded the segment stating, “The stars are aligned for a deal” to which Andy very much agreed.
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