TL;DR

Trump’s unpredictable trade tactics have eroded trust, leaving China unwilling to negotiate further, mirroring past financial crises built on broken promises.

Story

Fool me once, shame on you. Fool me twice…well, China isn’t falling for it a third time. Trump’s trade war antics—flip-flopping between tariffs and temporary suspensions—left China feeling like they’d been played. They agreed to buy more American goods, but the tariffs never really went away. Imagine agreeing to buy your neighbor’s lemonade but they keep raising the price every few days.

This isn’t just about tariffs, it’s about trust. Trump’s erratic behavior—tariffing allies like Mexico, then offering exemptions—makes him an unreliable negotiator. Like a poker player who keeps changing the rules, no one wants to sit at his table. This reminds me of the 2008 financial crisis, built on shaky deals and broken promises. Are we headed for another crash? Maybe. Maybe not. But one thing’s for sure: trust is gone, and that’s a hard thing to rebuild. Just look at Enron – lies and deception can only prop up a system for so long.

‣ Tariff: A tax on imported goods. ‣ Trade War: When countries impose tariffs on each other, escalating tensions. ‣ Exemption: Permission not to pay a tariff.

Advice

Don’t trust politicians who change their minds more often than their socks. Especially when tariffs—and your wallet—are on the line.

Source

https://www.reddit.com/r/stocks/comments/1k4wi1v/why_is_china_now_daring_to_go_headtohead_with_the/