Trump and Xi Agree to “Talk About Talking,” Markets Pretend This Means Anything…

What’s $600 billion in global trade tension look like? Well, it’s apparently just 90 minutes of Trump and Xi Jinping on the phone, both pretending they’re not sick of each other’s voice. 

(Source: Giphy) 

In short, yesterday, Trump finally mustered up the courage to the king of the Red Dragon, Xi Jinping… and after a full hour and a half of “focused almost entirely on trade” (translation: tariffs, tariffs, more tariffs, and probably at least one Musk roast), we got the big announcement: trade officials will meet again “soon” at some yet-to-be-determined location. (If it’s another Geneva snoozefest, I’m demanding hazard pay.) 

For this super-secret summit, America’s sending its finest: Scott Bessent, Howard Lutnick, and Jamieson Greer. From there, they have one goal and one goal only… somehow rewiring a relationship that’s currently held together with duct tape and mutual suspicion. Last time these squads met in May, we got a tiny, temporary tariff reduction and a promise from China to ship over rare earths. Since then, the only thing moving slower than those minerals is the actual progress. 

(Source: CNBC) 

Meanwhile, both sides are basically hate-liking each other’s LinkedIn posts. The U.S. is accusing Beijing of slow-walking rare earth exports like it’s trying to break a Guinness World Record in diplomatic foot-dragging. China’s throwing a fit over Trump’s new visa restrictions and yet another chip crackdown. If you’re looking for “positive conclusion,” this isn’t it… this is what Karin Jean-Pierre’s “let’s circle back” looks like in real life. 

For investors, the only thing you need to know is that stocks whipsawed on the news, because nothing gets Wall Street hot and bothered like vague promises of future negotiations. “Very positive conclusion for both Countries,” Trump posted on Truth Social, presumably in between his Elon Musk-All caps cook session. And yet, China’s foreign ministry was quick to point out that Trump requested the call. Translation: China made it a point to make Trump out as the needy one. Simply put, both sides are just hoping to avoid being the first to blink while global supply chains chew their fingernails down to the bone.

(Source: Giphy) 

In the end, where does that leave us going into today’s market price action? We’re back to the “talks about talks” stage. Meaning, don’t hold your breath for a breakthrough… at least for now. Of course, that could all change today. Elon will open his mouth, Trump will likely open his mouth… and maybe we’ll get a reaction from Xi? Who knows… anything can happen. But as for progress? Not likely. 

Meaning, for now, keep your head on a swivel and place your bets accordingly, friends. Until next time…

Stocks.News does not hold positions in companies mentioned in the article.