After two days of talks in Shanghai, US and Chinese trade negotiators walked away from the table without a deal. Washington will host the next round of talks in early September, but expectations for a breakthrough remain low. Professor Richard Wolff and Peter Schiff of Euro Pacific Capital join RT’s Boom Bust to discuss the “constructive” talks and give their prognosis.
“I don’t think that we are going to get trade deal,” Schiff says, explaining that “the problem for Trump is that he raised expectations so high for an incredible deal that he can’t disappoint the markets by delivering a deal that doesn’t live up to expectations.”
Schiff adds: “I think what Trump is now doing is trying to dangle the prospects of a deal in front of voters” by saying that the only way to get a good deal is to re-elect him.
Wolff echoes the thought, noting that “this whole struggle with China has been a ploy from Mr Trump to get re-elected from the beginning… So, as Peter says he’s going to dangle it for as long as he can…”
According to Wolff, as a result of uncertainty around the trade talks, “this will be a costly election ploy by Mr Trump and the Republicans.”
For more stories on economy & finance visit RT’s business section