flatreader

Trump scrambling for trade deals as the clock runs out on his 90-day threat: CNN

Despite Donald Trump adviser Peter Navarro's promise that trade negotiations would result in "90 deals in 90 days" there is a little hope that the president will be able to point more than a handful when the clock runs out.

With the president angrily pulling the plug on tariff negotiations with major trade partner Canada Friday morning with a Truth Social post announcing, "We are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," CNN is reporting the president's purported deal-making prowess is coming up short.

According to CNN's David Goldman, the trade negotiation flop is coming at the "worst possible time."

"With just two trade frameworks inked and dozens to go before the July 9 deadline, that timeframe appears increasingly unlikely — just as America’s economy might be taking a turn for the worse," he wrote before pointing out, "Trump acknowledged that hundreds or even dozens of deals aren’t possible on such a short timeframe — a point he reiterated Friday at a press briefing at the White House."

White House press secretary Karoline Leavitt admitted as much as she lowered expectations this week by telling reporters, "The deadline is not critical.”

That, in turn, will likely mean the Trump administration will kick the trade deal can further down the road.

CNN is reporting, "The problem with the perpetually pushed-back tariff timetable is that the economy could really use some deals right about now. After several months of strong economic news but incredibly weak consumer sentiment, America is starting to see those trends reverse: The vibes are on the rebound, but evidence is mounting that the economy is getting worse."

James Knightley, chief US economist for ING, warned clients on Friday, "Households are anxious about what tariff-induced price hikes will do to their spending power, while concerns about the robustness of the jobs market are on the rise. Equity markets have recovered and are at all-time highs, but house prices nationally are starting to come under downward pressure.”

"Although tax cuts from Trump’s sweeping domestic policy agenda could help mitigate higher prices from tariffs, Trump’s trade war continues to risk retaliation from American’s key trading partners. Higher tariffs from foreign countries could slow the US economy, risking a recession.," CNN is reporting.

You can read more here