which both the United States and China continue to raise tariffs. US businesses that import Chinese goods pay the tariffs by the United States. Companies that eat that cost, which pinches their profits; or they pass the cost onto consumers, which can demand demand for their products.
Either way, companies lose. That's why Wall Street has been hoping for an end to the trade war.
Although discussions between the United States and China ended without a deal on Friday, investors were encouraged by positive comments from Trump's trade team. That turned out to be big in the stock market in Friday afternoon.
Yet it's not clear what the next step will be to revolve a deal.
effect but did not offer specifics on how it would respond. China sold tariffs on American agricultural products in response to previous trump tariffs and stopped buying US soybeans for about six months.
Kudlow said Sunday there is a "strong possibility" next month.
Last week was horrible overall for US stocks. It was the Dow's worst week since March, and every major index recorded losses.
"We are right where we want to be with China, "he said in one tweet. "Remember, they broke the deal with us. We will be taking in Tens of Billions of Dollars in Tariffs from China."