So is Trump actually pulling the trigger on the trade war? Or just more silly “art of the deal” and “brinksmanship”?
Because we can say with a very high probability CN won’t back down. They know they can outlast. And bye bye bull market for Trumpy, who claimed ownership of said market. The US economy is all duct-taped together, inviting a recession/bear also invites loss of control, lots of things that could unwind for potentially very big ouchie.
Sure you wanna do that Trumpy?
You can keep your “freedom” on that side of the planet, thank you very much!
Daddy panda is gonna step on your eagle’s torso pinning it, and poop on its face, and then with the other foot step on its face, and rub the poop in.
4-D all day er’day
China feelin’ the pain:
China’s benchmark equity gauge tumbled to a two-year low and the yuan weakened as a worsening trade dispute with the U.S. spurred panic selling. Bonds gained.
The Shanghai Composite Index plummeted almost 5 percent in intraday trading before paring losses, while a gauge of technology shares sank the most in two years. China’s currency fell to a five-month low against the dollar and the 10 year-yield on government debt dropped two basis points.
U.S. President Donald Trump threatened to slap tariffs on another $200 billion in Chinese imports, prompting Beijing said it would take “strong” countermeasures if new levies are issued. The latest threat from Trump comes before the first wave of 25 percent import tariffs takes effect on July 6. Those are aimed at President Xi Jinping’s Made in China 2025 plan that seeks to develop sophisticated manufacturing capabilities.
“It is truly a bloodbath,” said Margaret Yang, a strategist at CMC Markets Singapore Pte. “Things may turn more sour should China retaliate.”
^ LOL, oh come on. Nobody in Shanghai cares about a 3.5% move kid.
The “bloodbath” is going to be the midterms and 2020 after Trump crashes the S&P500! 
LMAO, loving the tears from China, makes a nice marinade.
The government of China apparently cares. 1000+ stocks in Shanghai were down over 10% today, and China announced they will start their systematic price support program. A tariff war is worse for China than for the US, given the trade imbalance.
yep. im a firm believer that a trade war will hurt everyone, but it will prolly hurt the person with the trade surplus a lot more. us exports 100 from china but imports 500b so we dont need them as much as they need us. from a relative perspective, the us will win.
its kind of like in a boxing match. china might punch us in our shoulder but as long as we deliver a coup de grace to the face. we gucci. so imo its in chinas best interest to negotiate.
Yes, actually, there is a legitimate concern that Trump and/or his voters will perceive a relative win as a victory for the US over China, even if both sides lose in absolute terms. Most Americans support Trump’s anti China policy, and presumably, many of these Americans will also be willing to suffer some negative effect, like slightly higher prices for certain goods, if they believe that they are supporting some kind of domestic interest.
It would be a mistake to think that Trump’s actions are not guided by a well thought out political strategy. His approval rating has been increasing. As I posted elsewhere, more Americans in over a decade believe the country is “on the right track”. These numbers will translate into a better outcome for Republicans in the midterm elections.
The US has a stronger position than China in these negotiations. China cannot match Trump’s threat of tariffs on $200 billion of imports; they import only about $120 billion of goods from the US annually. China’s economic activity is more volatile, and their economy is smaller. Furthermore, they have no incentive to potentially harm their economy in the long term for short term interests*. Finally, Trump’s complaints about intellectual property theft are completely legitimate.
It is more in China’s interests to give up ground to the US, but the US must also give them a way to do this without losing face (so far, this hasn’t been determined).
*President Xi, unlike Trump, is unconcerned about being reelected in a couple of years.
According to Lloyd Blankfein today, the Trump administration’s escalation of tariff threats against China makes sense as a negotiating strategy: “That’s what you’d do if it was a negotiating position and you wanted to remind your negotiating counterparty of how much firepower you have”
What happens if China just decides to weaken their currency?
What happened when the Germans bombed Pearl Harbor?