Trump Ups the Ante on Tariffs With China

​​Trump’s disruptive policy statements continue to lead to wild swings in stock prices.  The President now says he is considering placing tariffs on an additional $100 billion of Chinese imports. 
The important thing to note is how none of the now $150 billion in tariffs on China would go into effect for at least two months.  In the meanwhile, Trump is expected to announce a preliminary new deal for NAFTA this month, erasing a major potential trade dispute.
While a trade war with China would be damaging to both countries, neither country wants one.  China has already announced it will agree to most of Trump’s demands.  The President will eventually accept their concessions and take credit for defending US jobs and technology while avoiding a destructive trade war. 
The economy is fundamentally sound.  With the S&P 500 11% below value, investors should avoid selling in response to the turmoil over trade and remain fully committed to stocks.