Expert: Trade, Tariffs Situation Can Change Quickly

While tariffs are in effect on goods from Mexico and Canada and doubled on China, the situation is fluid.  That’s the opinion of Arlan Suderman, the chief commodities analyst for StoneX.  He noted things could change quickly.

"Very definitely, and the thing to understand about China is they value relationship negotiations," Suderman said.  "You may have different values than I do, but if we have a relationship of respect, we can do business.  So, President Trump focused on that during his first term, speaking very respectfully on Xi Jinping, and so, as a part of that Chinese culture, they like to negotiate face to face.  But they kept dragging things out, and they forced Trump into 13 face-to-face negotiations, Trump and his team, and that drug it out for several years and bought time for China, and Trump’s saying, ‘This time, I don't have that kind of time.’”

China’s current economic struggles may have played a part in President Trump’s decision to double the tariff rate.

“And so, I think he sees China is vulnerable right now with their economy hurting," Suderman continued.  "He feels like he has momentum, and that's why I think he's taken a much more aggressive approach this time, trying to leverage Canada and Mexico to also work to his advantage and trying to take advantage this time to force China into doing something quicker.”

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