Trump team needs a trade deal to stop investor panic

About 10 days ago, Scott Bessent started sharing with Wall Street executives his progress in negotiating trade deals with major partners like India, Japan, South Korea, and Australia. The aim was to remove the dark cloud hanging over the US markets and economy.

If successful, these deals would be welcomed by the markets and allow President Trump to focus on isolating China, a key player in global trade with its high tariffs and intellectual property theft.

By avoiding a potential economic crisis caused by tariffs, inflation, and a recession, Trump hoped to secure his presidency.

However, with no imminent deals in sight by Monday, the markets reacted negatively after the weekend, with Trump’s comments about Fed Chair Jerome Powell adding to the uncertainty.

Stocks plummeted, bond yields rose, and there was a shift towards assets like gold and Bitcoin, signaling a lack of confidence in traditional investments.

The trade war’s unpredictability is concerning for investors and CEOs who face rising costs due to tariffs and economic slowdown fears.

While negotiations with countries like Japan have hit roadblocks, the White House continues to push for favorable terms to remove trade barriers.

Market uncertainty persists as different voices within the administration handle trade discussions, leaving businesses craving stability in an uncertain environment.

The ultimate question remains: will Trump’s negotiation tactics work in the realm of international trade as they did in his real estate career?

Despite Bessent’s efforts, the final decisions lie with Trump, whose negotiation style keeps everyone guessing.