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Journalism of Courage
In an interview recorded on April 22 and published in the Time Magazine on Friday, April 25, US President Donald Trump claimed that he had already signed 200 trade deals. To be sure, there are only 195 recognised countries according to the United Nations. Trump was being asked the status of his trade advisor Peter Navarro’s assertion that 90 deals in 90 days was possible.
When the Time staff asked Trump to share the names of countries with whom the US has signed these deals, Trump said: “Because the deal is a deal that I choose. View it differently: We are a department store, and we set the price. I meet with the companies, and then I set a fair price, what I consider to be a fair price, and they can pay it, or they don’t have to pay it. They don’t have to do business with the United States, but I set a tariff on countries…”
When asked further why he isn’t announcing these deals if they are done, Trump said that he will in 3-4 weeks. Trump also claimed that Xi Jinping has already called him about a trade deal. It is to be noted that on Thursday, a spokesperson of the Chinese Commerce Ministry had categorically denied that China was engaged in any trade negotiations with the US. For its part, no one in the US administration has provided any proof to show that China is lying.
Meanwhile, also on Friday, a University of Michigan survey showed that US consumer sentiment had plummeted to the fourth-lowest level since 1952.
“Consumer sentiment fell for the fourth straight month, plunging 8% from March…Expectations have fallen a precipitous 32% since January, the steepest three-month percentage decline seen since the 1990 recession,” stated Joanne Hsu, the Surveys of Consumers Director.
She also underlined that it was trade uncertainty that was a key factor. “Consumers perceive risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.
As consumer sentiments took a dive, their expectations about the rate of inflation a year from now shot up sharply. “Year-ahead inflation expectations surged from 5.0% last month to 6.5% this month, the highest reading since 1981 and marking four consecutive months of unusually large increases of 0.5 percentage points or more.”
The combined effect of these two trends is weaker both weaker growth and rising inflation in the days, weeks and months ahead.
So, how likely is it for President Trump to have done what he claims to have done?
In the same interview, the Time staff reminded Trump that during the campaign trail he had said that he would end the war in Ukraine on day one.
Trump simply replied the following: “Well, I said that figuratively, and I said that as an exaggeration, because to make a point, and you know, it gets, of course, by the fake news [unintelligible]. Obviously, people know that when I said that, it was said in jest, but it was also said that it will be ended”
