Home Trade Talk The Queen Invites Trump to the U.K. to Talk Trade

The Queen Invites Trump to the U.K. to Talk Trade


Investors know the trade talks with China won’t help them much. According to the New York Times, Trump plans to keep tariffs in place after the Chinese agree to make him look like the victor. The tariffs hurt investors more than the Chinese. The Chinese government injected billions of dollars into their new consumer-driven economy.

China has a history of not doing what they promise to do on the world stage. They may buy more U.S. products, and they may drop tariffs on American-made vehicles. And China did say they would protect intellectual property and ban the export of fentanyl. But agreeing on some of the other wild Trump requests won’t happen in local Chinese governments. According to a former U.S. ambassador to China, local governments may not follow Beijing’s rules.

Plus, China is in no hurry to make Trump look good until Canada releases Huawei CFO Cindy Wanzhou. Wanzhou is one of Trump’s trade bargaining chips, according to the Washington Post. Canada should make a ruling on Wanzhou extradition to the U.S. in May. Bob Lighthizer, the chief U.S. trade negotiator, told the press it could take years before the results of an agreement with China produces results for investors.

Investors got good news when the first corporate earnings report hit the press. Boeing’s news won’t be much help now that the 737 Max crisis disrupted flight schedules and the company’s stock took a 23 percent hit. Some investors worry about Facebook and Google now that the government wants to rain on their Wild West type business parade.

It’s a challenging year for investors. The EU plans to impose tariffs on American products, and Europe’s economy is on life support. California’s PG&E is on its way to the bankruptcy court. Plus, projected second-quarter corporate earnings won’t come close to last year’s earnings.

But even though American investors face challenges, U.K. investors are in panic mode. Theresa May can’t get Parliament to agree on her government’s Brexit deal. If Britain leaves the EU without a deal, the financial health of the country will suffer, according to the New York Times.

May’s new Brexit plan is still in the works. Part of that plan is for the Queen to invite Trump to visit the U.K. in June. May wants to seal a trade deal with the United States before she meets with EU leaders again. Obviously, May isn’t up to speed on how Trump negotiates when he thinks he holds all the cards.