The past 24 hours have seen a back-and-forth between the U.S. and China about the ongoing trade war, and one economist said it's clear everyone at the White House is clueless, including the president.
Speaking to MSNBC on Thursday, Brian Cheung, NBC's budget and data correspondent, and University of Michigan economics professor Justin Wolfer discussed the de-escalation in language from the U.S. after weeks of what the Chinese called "extreme pressure."
“If a negotiated solution is truly what the U.S. wants, it should stop threatening and blackmailing China and seek dialogue based on equality, respect, and mutual benefit,” the Chinese foreign ministry spokesperson said Wednesday, according to Politico. “To keep asking for a deal while exerting extreme pressure is not the right way to deal with China and simply will not work.”
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MSNBC host Ana Cabrera noted, "Things have been changing day to day or in some cases hour by hour. In some cases, it could be minute by minute."
"Look, it's amazing," said Wolfers. "I'm an economist. I've been following this closely. And if you asked me where tariff negotiations are between the two great superpowers of the global economy, my answer is not only do I not know, but different people in the White House are saying different things. It makes it impossible."
On Monday, Trump met with big-box retail CEOs, who warned that the U.S. was about to see "empty shelves" due to Trump's trade war, CBS News reported.
"Look, first of all, for businesses, we rely on China for all sorts of inputs into our own production. They rely on us as well. It makes it hard for mums and dads at home. You know. I was talking to a friend the other day who needs a new air conditioner, and he said, should I wait? Well, tariffs are 145%, and the president said that's about to change. So you should wait. But then the president said that maybe it won't change. And then the press secretary said it definitely won't change. No one knows what's going on, mate."
Cheung explained that the macro version of this is on Wall Street, with the markets fluctuating so wildly that it's creating uncertainty. On the micro level, it's families like the one Wolfers cited, "who have to watch the White House press conference to see whether or not the policies are such that they should try to buy [an air conditioner] now, or try to wait."
Reporter Garrett Haake said he couldn't "do it with a cool Australian accent," but confirmed from his reporting that "no one knows what's going on, mate."
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