Capital Link International CEO Brett McGonegal. Photo: CNBC screen grab

While the US administration has said it is looking a further big package of tariffs on Chinese goods, many analysts aren’t convinced that this will happen, partly because key people inside the White House don’t support such a move.

Capital Link International CEO Brett McGonegal noted on Friday that financial markets around the world may also be getting used to the “big bark, no bite” style of US President Donald Trump.

“I find it curious to look at the wording [from the US administration] this time, that he’s considering another $100 billion [worth of tariffs] with the trade rep … [but] I think the actual verbiage is coming down slightly,” he said, during an interview on CNBC.

“I think it’s just part of this big-bark, no-bite type of thing [from Trump] that markets [are] getting more accustomed to understanding. The real issue is a trade deficit goes hand-in-hand with a capital account surplus. The US needs money coming in to fund a fiscal deficit via issuing paper.”

McGonegal said he suspected the Chinese leadership “just want the noise to go away”. Meanwhile, it was very clear that Trump’s economic advisor Larry Kudlow “is not a fan of any sort of tariff”, he said.

McGonegal is also a principal shareholder of Asia Times.