US Treasury Secretary Signals Possible End to US-China Tariff War as Trump Softens Stance
On the 22nd, US Treasury Secretary Mnuchin indicated at a closed-door meeting that the US-China tariff war is expected to cool down soon, prompting a rise in the New York stock market. Former legislator Tsai Cheng-yuan remarked that this suggests the tariff war is over and that Trump has softened his stance, as he underestimated China's strong resilience.
Tsai further commented on Trump's prior threats to replace Federal Reserve Chairman Powell, which shocked the market, and reports that he might assume the position himself raised concerns about the trust in the dollar, as it relies on the independence of the Federal Reserve.
With Trump's difficulties in confronting China's firm stance, he quickly softened his approach to maintain flexibility. Mnuchin also signaled that the tariffs imposed on China are too high, suggesting the end of the tariff battle.
