#TrumpNFT “If this means that Trump is sidelining the administration’s ideologues, such as Peter Navarro, and giving more voice to pragmatists such as Scott Bessent, there may still be disengagement from China, but more slowly.

“The prospect of reengagement with the U.S.’s allies (the EU, Japan, India, Canada, and Mexico, etc.) also beckons. After all, if the administration can play nice with China, it can play nice with anyone.”

Markets will be buoyed by the notion that a lower tariff rate with China might indicate “a more predictable direction [of foreign policy] from here,” chimed in Jim Reid, global head of macro research at Deutsche Bank.