Nobody Wants A Trade War
If anybody's ever noticed this is President Trump's modus operendi. He announces hard initial strikes but follows with ingratiated, softer negotiations.
This style of negotiation hints that Trump's G-7 tariff threats hope to lay the groundwork for countries to reach an agreement today and tomorrow.
Our Guess: Trump Wants To Come Away With Something
President Trump's signature negotiating tactic (Strike hard first and negotiate softly after) helped him walk away with something from China just recently. It helped Trump close a tax deal in the US.
Today's 'tariffs everywhere' threats from President Trump probably never come to fruition but rather gets some gesture token of appeasement from the US' G-7 allies.
If so, while the market looks down premarket from here, any agreement can jump the market after a weekend of negotiations.
Double Jump With North Korea Next Week
If correct about G-7 you could get a double jump in the market thanks to a potential peace accord with North Korea next week.
As we wrote yesterday, US and China approaching trade solidarity can pressure North Korea into feeling isolated creating a better chance for a peace deal.
That, along with a G-7 deal could be great for markets next week.
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