President Trump isn’t backing down from the massive trade tariffs imposed on China in recent weeks.
And now, as China pushed back, he’s upping the ante with a threat of as much as 100 billion in additional tariffs.
That triggered the ChiComs with a promise of a ‘major response’ if Trump doesn’t ease up.
So now we have a massive trade war on our hands which is putting the brakes on the exploding stock market.
But! That’s actually a good thing. When stock prices are overvalued, it’s a bubble waiting to burst.
In the long run, we could be thanking the Chinese for people so Chinese.
Here’s more from Reuters…
President Donald Trump on Thursday directed U.S. trade officials to identify tariffs on $100 billion more Chinese imports, upping the ante in an already high-stakes trade confrontation between the world’s two largest economies.
The further tariffs were being considered “in light of China’s unfair retaliation” against earlier U.S. trade actions, which included a proposed $50 billion of tariffs on Chinese goods, Trump said in a White House statement.
“This is what a trade war looks like, and what we have warned against from the start,” said National Retail Federation President and CEO Matthew Shay.
“We are on a dangerous downward spiral and American families will be on the losing end,” Shay added in a statement, urging Trump “to stop playing a game of chicken with the U.S. economy.”
Financial markets, roiled for days by the trade fight and Trump’s management of it, whipsawed again on the new threat. After a bullish regular trading day, U.S. equity futures sold off sharply in after-market-hours trading.