Nobel Prize-winner Paul Krugman remarks on a report that US Treasury Secretary Scott Bessent told a bunch of big investors that the China tariffs will not last long:
While news media and some investors may still be credulous enough to believe Trump’s boasts, harder-headed players will look at his U-turns and conclude that he runs away when confronted. Why would China be “very nice” now that it knows that Trump can be rolled? On the contrary, China will be even less likely than before to make concessions. And other countries will be more willing to stand up to Trump and more likely to make deals with Beijing.
We are, in short, in a worse position than we were before Trump began his tariff bluster. Being a cowardly, loud-mouthed bully presiding over utter chaos is not an effective negotiating strategy.
A smart guy would hire an expert with a great track record to run a problem area.
Might I suggest to President Trump that he hire his predecessor, President Biden? A spectacular track record when it comes to economics.
