It''s a miracle!
Or so they will have you believe. Just one market day after Trump declares a Trade War on China, team Trump is claiming victory in that Trade War with Treasury Secretary Steve Mnuchin saying that "the U.S. can reach an agreement with China that will avert the need for President Donald Trump to impose tariffs on at least $50 billion of goods from the country." “We’re having very productive conversations with them,” Mnuchin said on “Fox News Sunday,” when discussing talks with China. “I’m cautiously hopeful we reach an agreement.”
An optimist would say Trump's threats worked and China backed down but a realist might say China's threat to retaliate worked and Trump backed down because the net effect here is there will be no sanctions placed against China and Wilbur Ross is already running around claiming it will be a victory if China promises to buy some LNG (liquefied natural gas) from the US to help balance the trade deficit.
China, of course, doesn't care who they buy LNG from and, like oil, it's fungible – so it doesn't matter who we sell it to, there's a GLOBAL supply and demand picture that sets prices so if we sell more to China, we will sell less to someone else and not one job will be gained and not one net import/export Dollar will have shifted other than on the balance sheet with China.
Speaking of oil, that's been holding up over $70 on Brent (/BZ) and $65.85 at the moment on WTIC (/CL) with Gasoline at $2.0325 heading into Easter Weekend. It's going to be a nice short next week but this week there will still be a huge effort to keep the prices high into the holiday and the Saudis are pitching in by talking about extending their production cuts at the June OPEC meeting.