Who could have seen this coming?
After President Trump (perhaps unexpectedly) caused a shitstorm in markets on Friday with his threats against China, it appears the scale of the carnage required ‘good cop’ VP Vance to calm the waters before futures open tonight.
During an interview with Maria Bartiromo on Fox News, JD Vance called on Beijing to “choose the path of reason” in the latest spiraling trade fight between the US and China, claiming that President Donald Trump has more leverage.
“It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” Vance said on Fox News’s Sunday Morning Futures.
“If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable,” he said, then the US would, too.
Vance, who said he had spoken with Trump Saturday and Sunday, said the president “appreciates the friendship that he’s developed with Xi,” but added, “We have a lot of leverage. And my hope, and I know the president’s hope, is that we don’t have to use that leverage.”
He added that the good relationship is threatened “if the Chinese go down this pathway of cutting off the entire world from access to some of the goods that they produce.”
“We’re going to find out a lot in the weeks to come about whether China wants to start a trade war with us, or whether they actually want to be reasonable. I hope they choose the path of reason,” Vance said.
Watch the subtle shift in stance here…
🇺🇸🇨🇳 “We’re going to find whether China wants to start a trade war with us or be REASONABLE” — US Vice President, Vance pic.twitter.com/ksQ1m8X5cW
— Jeff George ™ (@jhon_odey) October 12, 2025
Crypto markets are up significantly on the comments with Ethereum outperforming…
And IG shows The Dow trading up around 155pts at time of writing…
So, circling back to where we started, who could have seen this coming? Well, us for sure…
Odds of Trump Sunday evening post:
“Had a great call with China’s wonderful president Xi Jinping, and our relations have never been better. Look forward to our meeting in two weeks. Thank you for your attention to this matter!”
— zerohedge (@zerohedge) October 10, 2025
Will the market ever learn?
And the market always falls for it pic.twitter.com/HwMKdmjA8Z
— zerohedge (@zerohedge) October 10, 2025
Brace for the TACO Monday meltup!
Loading recommendations…
