Trump’s statement that China tariffs will “come down substantially” but not to zero suggests a potential de-escalation, while Bessent’s comment on THE SAME DAY about a two- to three-year timeline for a deal indicates prolonged uncertainty.
These messages conflict: one implies near-term relief, the other a long slog. Markets hate uncertainty, and this inconsistency—paired with Bessent’s clarification that tariffs won’t be cut unilaterally—sparked volatility, with the S&P 500 dropping 100 points from its daily high after his remarks. It’s not a clear sell signal, but it’s a red flag for risk-off sentiment until clearer policy emerges.
This along with Walmart and Target warning of empty shelves next month is not a good look.