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The stand off with China has bigger implications in the long term. The more I look in Trump's history, the more I see he was talking about that for years. I don't think it will be a stretch to think that other very powerful people have the same convictions as him.
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If the above assumption is correct, Trump won't back off before the Chinese agree deal, ensuring the US economy can keep the existing gap. If/when it happens, impacts the general macro significantly.
First, few people well-educated in economics have ever agreed with Trump's economic views.
Second, his track record going back the >30 years I have been aware of him (resident of NYC and/or corporate banker with NYC-based bank) during Trump's infamous Commodore Hotel, Plaza Hotel, Atlantic City and Eastern Air Shuttle deals. In these, as in many of his deals later as President, he ignores details, lies about his backing and often loses, then calls it a win.
Third, the rise of populist/jingoistic political leadership around the world gives substantial justification for pessimism.
Lastly, I don't see only doom and gloom, but I do see substantial headwinds from political dystopia in US, UK, Italy, several countries in Eastern Europe, most of the Middle East including Israel, Australia, Brazil, Venezuela and on and on. Those are all enough to be depressing. Add to those factors the rapidly growing population of aging people collecting pensions and one see structural fissures from Japan, Poland, Brazil, US, and almost everywhere taht make income-producing populations shrink as a percentage of total population. These are enough to tank markets.
When one considers all those things in context of a US inability/unwillingness to be a partner in global solutions one can expect market volatility, exacerbated by the obviously massive threat from climate change, completely or largely ignored by most political forces worldwide.
Despite the foregoing I remain long APPL and TSLA, among others, because other options seem even less attractive. My non-US investments I continue to hold also without major alterations. I fully expect my net worth to reduce during the next few years, with negligible impact on my life. OTOH, I am also in the process of moving off-the-grid as much as possible and taking other steps to insulate myself as much as possible from the already obvious dramatic climate changes.
Luckily, Trump's non-US support is very limited. OTOH, here in Brazil his emulators have just taken power. The outlook is pretty dismal here also.
Obviously all this is not strictly market action. Still, in this situation TSLA is one of the few holdings trhat might well defy gravity. Thus, I continue to accumulate shares on dips and hold on highs, to the extent I can assess such things, which means I mostly just accumulate as afternoon lulls appear..
