Tag Archives: trade war

In news reports around the world, from Hong Kong’s South China Morning Post to RT.com, US President Donald Trump is reported to have softened his “tough” trade stance against China. In the April 8 reports, he said that Chinese President Xi Jinping will always be his friend and China and the US will negotiate a trade deal that will benefit the “two great nations,” a far cry from his blistering response of upping the ante to triple the number of Chinese goods subject to tariffs. But in true...

The escalating rounds of tariffs between the United States and China is an interesting point of economic debate. However, from the perspective of the interest rate markets, it appears to be one of those subjects that generates a great deal of economist commentary, but with limited market impact. This view is arguably complacent; whether it is too complacent is left for the reader to judge.... Bond Economics Trade War ComplacencyBrian Romanchuk

White House economic adviser Larry Kudlow stressed U.S. tariffs announced on Chinese goods are still only proposals that might never take effect as the Trump administration sought to tamp down fears of a trade war.“None of the tariffs have been put in place yet, these are all proposals,” Kudlow said in an interview Wednesday with Bloomberg News. “We’re putting it out for comment. There’s at least two months before any actions are taken.”Administration officials throughout the day emphasized...

Officials at the Office of the US Trade Representative were quoted as saying the proposal identified products which “benefit from Chinese industrial policies, including Made in China 2025.” According to research from investment bank Natixis, released Wednesday, more than two thirds of the items targeted by the tariffs are listed in the Made in China 2025 strategy, which outlines how China intends to move up the economic value chain by investing in strategic technologies. China’s plan to...

The purpose of this article is to show how the proposed $60B trade tariffs on China will impact macro fiscal flows and investment markets. To assess this regulatory change, a balance of sectoral flow analysis has been used (following British economist Professor Wynne Godley's work)…. Seeking AlphaImpact Assessment Of $60B China Trade Tariffs Alan Longbon

The take-away: "Negotiations must be equal, and China will not accept any consultation under unilateral coercion,” Gao said." China (and Russia) demand to be treated as equals, which would mean the US accepting multipolarity.  Is the US willing to go to the mat to maintain unipolarity? Stay tuned.ReutersChina warns U.S. not to open Pandora's Box, unleash trade ills on world Se Young Lee and Yawen Chen

Deconstructing the aggregates. The gap resulted mainly from differences in statistical approaches, such as whether or not to include transit trade in the calculations, according to Zhang Monan, researcher with China Center for International Economic Exchanges. Such discrepancies have inflated the U.S. calculation of its trade deficit with China by about 20 percent every year, according to Minister of Commerce Zhong Shan. The United States is home to many multinational companies that...

This is not a joke.Zero HedgeUS Demands China Keep Importing American Garbage Tyler Durden

Politics is playing a bigger role in influencing the markets than is typical, and I (and others) am still trying to figure out where Donald Trump is taking us, especially as it regards trade and other wars. Besides prompting me to think hard and dig deep into what’s now happening, it is leading me to delve deeper into past trade and military wars to see their effects on economies and markets. I will pass along my findings when I complete the examination. In the meantime, I will share some...

“At the same time, we are concerned about the negative impact as you consider remedial actions under Section 301 of the Trade Act could have on America’s working families,” the letter stated. “Applying any additional broad-based tariff as part of a Section 301 action would worsen this inequity and punish American working families with higher prices on household basics like clothing, shoes, electronics, and home goods.”... ReutersLarge U.S. retailers urge Trump not to hit China with tariffs...