The whole world waiting for the trade talks to conclude positively, was positioned to make money from the good news; till Trump as Trumpian as he is ; tweeted that he was going to increase tariffs on China by Friday- May 10, 2019.
Our dealmaker-in chief; caused the entire world's stock markets to collapse.
The Commerce Department , said in a statement that China failed to honor some commitments as discussed in their earlier talks.
But even even before Trump took office in January 2017, many US companies had been wanting to reduce their China footprint for many reasons. The list includes: an increasingly hostile attitude toward foreign businesses (and executives), the issues with Huawei and the resulting arbitary arrests in China of American executives, more assertive China-first policies from President Xi Jinping, rising costs concerns surrounding – IP theft, concentration risk and quality control, scaling and the risk of a n authoritative Government.
However, raising tarriff on Chinese products is like punishing US consumers for problems Trump has with China.
By limiting imports, the prices of US consumers and businesses increases. High prices in turn leads to less consumer spending and less investments. This leads to negligible GDP gains and literally stunts economic growth.
Negotiations are barely done in a take or leave it attitude. In bi-lateral negotiations - clarity on what each party is willing to leave on the table to gain the advantage of working together needs to be clear to not only those two parties but the non-parties getting impacted as well.
THAT IS WHEN A NEGOTIATION BECOMES A DEAL