"The president's people — [U.S. Trade Representative Robert] Lighthizer, obviously — don't want to give in if there isn't an enforcement mechanism. And maybe the enforcement mechanism is, 'Look, first of all, we're going to leave the tariffs no matter what. And second, if you screw around with us, we're going to take them up.
Art Cashin, director of floor operations at the New York Stock Exchange for UBS, had his eye on what's next for stocks: "On Friday, everybody was talking about being within a week of signing a deal. We heard from Mnuchin and [National Economic Council Director Larry] Kudlow and others that we were getting very close, that many things had been removed, and then, suddenly, over the weekend, the president surprised everybody with these tweets. Now, what the market's going to watch for is will the Chinese delegation continue to be coming to the U.S.
Former U.S. Rep. Jeb Hensarling, now executive vice chairman at UBS, said that while this may have extended the timeline for a deal to be made, it didn't take one off the table entirely: "It's in both countries' interests to reach an agreement. I think the probabilities still favor that. It's not the first time the president has threatened tariffs. I'm not here, really, to speak on the negotiating strategy, whether that was good or bad.
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