Trump now trying to get a face-saving deal with China: Peter Cardillo

Market should be relieved that there is not going to be any full blown-out trading war with China, says Peter Cardillo, Spartan Capital Securities, talking to ET Now.

Edited excerpts:

What is your view on the global markets? Are yields likely to go up across the board?

It is partially a good news that Trump is holding up the imposition of new tariffs on June 1st. That is a sign that there probably would be some sort of agreement. Whether or not it is going to be the agreement that the administration was looking for is a different story. But it is good news and should basically relieve the markets of the fear factor that we could be entering into a full blown trading war with China.

Talking about trade war, are things coming in line with Street expectations that they may talk harsh but ultimately there would be a win-win situation for both?


You have to remember that Mr Trump was very concerned about the trade deficit and he certainly took a hard line against China. He indicated that trade wars were easy to win, that negotiations were easy but he is finding out that that is not the case and so he is now trying to get some sort of a deal that will help the administration save face.