A new note from investment bank JPMorgan advises traders to not buy into the hype that President Donald Trump has ended his own trade war with China.
As reported by CNBC's Carl Quintanilla, JPMorgan is telling investors that Trump's declaration this week that China will immediately drop all tariffs on American cars has no basis in reality.
In particular, the note said that investors should have "valid reason for caution" when it comes to investing on the hopes that Trump is on the verge of a major breakthrough with China.
"It doesn’t seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump’s tweets (which seem if not completely fabricated then grossly exaggerated) with reality," the note states.
Shortly after a dinner meeting with Chinese President Xi Jinping during the G-20 summit in Argentina, Trump excitedly declared that China would eliminate tariffs on American cars and would also start bulk buying American soy beans once again.
However, the only concrete measure to have come out from the meeting seems to have been a decision to not further escalate trade tariffs while the United States and China try to hammer out a new deal.
See an excerpt from JPMorgan's note below.
@zachgraeve https://t.co/hWNFC2Sle5— Carl Quintanilla (@Carl Quintanilla) 1543927381.0