Secretary of the Treasury Scott Bessent met with officials from China to discuss a trade deal, and it’s looking good. Today’s show breaks it down.

According to the Financial Times:

The US and China have agreed to lower tariffs for the next 90 days in a major de-escalation of the trade war between the world’s two largest economies.

“The 90-day [window] will really tell us if this is a win or not,” Gerald A said. “It does not seem like we caved right now, but we are still not 100% sure.”

As part of a deal hammered out in Geneva over the weekend, the US will lower additional tariffs on Chinese goods to 30 per cent from 145 per cent and China will reduce duties on US imports to 10 per cent from 125 per cent. China said it would also “suspend or cancel” non-tariff measures taken against the US.

The decision pulls both sides at least temporarily back from the brink of a mutually damaging hard decoupling of their economies that could undermine growth prospects and fuel inflation in the US and job losses in China.

“We want more balanced trade, and I think both sides are committed to achieving that,” Scott Bessent, US Treasury secretary, said at a briefing in Geneva on Monday. “Neither side wants a decoupling.”

“Here’s where I disagree: both sides are not committed to achieving that, and I don’t necessarily think it’s possible,” Crowder said. “There can’t really be a balanced trade when [consumers in China aren’t truly consumers]—they don’t spend. They produce, and we consume, but they don’t consume our products.”

If Americans were to stop buying cheap stuff from China, their economy would be significantly impacted.

“China won’t allow its people to enter the consumer market, and that is a scary thing.

Subsequently, it may never be the case that there is “balanced trade” when the country is run by a communist government.