And just like that the "mystery" whether China would "reduce and remove" auto tariffs as Trump tweeted on Sunday night is over, and we have Trump’s top economic adviser to thank for it.
Larry Kudlow said the White House doesn’t yet have a deal with China to reduce tariffs on U.S.-made cars, backtracking from a tweet by the president just two days earlier.
"I think it’s coming, OK" Kudlow told Fox News Tuesday. "It hasn’t been signed and sealed and delivered yet."
.@SteveDoocy: The president tweeted out that "China has agreed to reduce & remove tariffs on cars coming into China from the US." Is that true?@larry_kudlow: "I think it's coming, ok?"— Aaron Rupar (@atrupar) December 4, 2018
D: He already told us it's a done deal!
K: "It hasn't been signed & sealed & delivered yet" pic.twitter.com/HuHDjNlk8h
Kudlow told reporters at the White House that he believes the president expects China will reduce its car tariffs to zero, and said that the car tafiff issue would be a ltimus test for trade relationships.
Meanwhile, as reported last night, officials in Beijing declined to comment on the tweet and haven’t confirmed such an agreement. Worse, China went so far as to censor WeChat posts by the US Embassy in China desribing the trade truce, confirming that China's take of what happened on Saturday is drastically different from that of the US.
Trump sent car stocks soaring by announcing late Sunday that a deal had been reached. On Tuesday, the entire gap was closed...
... as it became increasingly clear that not only did the Trump administration not have a clear understanding of what happened, but was fabricating the narrative in real time just to achieve a market bounce.