Read more at https://www.channelnewsasia.com/news/business/trade-war-inches-closer-as-us-china-tensions-mount-10103820
(Updated: )
Ricky Lim ·
The US strategy is seriously flawed. The Trump administration, focused on reducing an outsized bilateral trade deficit with China by initiating aggressive tariffs and other sanctions, doesn't appreciate the scope of America’s multilateral trade deficits with over 100 nations.
This macroeconomic imbalance stems from a shortfall in domestic saving that is about to worsen as federal budget deficits rise following the enactment of large tax cuts in late 2017. And that’s where the problem goes from bad to worse.
If the United States opts for protectionism at a time when its current account and multilateral trade imbalances are likely to widen, financial markets could come under considerable pressure.
China is the largest market for US soy and the threat of tariffs on exports of the commodity has the potential to whip up trade anxieties in stalwart Republican areas.
The American Soybean Association called on the Trump administration "to reconsider the tariffs that led to this retaliation."
"He's hurting his base, he's really annoyed a lot of Republicans in the senate and the house," said Hufbauer.
"The way he's going now, he's got to compromise out to have a chance of keeping the Congress Republican in November."
"I think China is perfectly happy to play a game of chicken with the United States on this because they believe the US will blink first."
--
Trump - the big bully now realise that the bigger loser is going to be the Trump-led US !
Only inflicting great pain on Trump - will let this bully knows that - bullying will not pay.
Where is that Jessis Ng (guy disguise girl) and that Sheen Zhong San (that sounds like Sun Zhong San) --- this is the outcome of ya ya, talk big bully.
This macroeconomic imbalance stems from a shortfall in domestic saving that is about to worsen as federal budget deficits rise following the enactment of large tax cuts in late 2017. And that’s where the problem goes from bad to worse.
If the United States opts for protectionism at a time when its current account and multilateral trade imbalances are likely to widen, financial markets could come under considerable pressure.
China is the largest market for US soy and the threat of tariffs on exports of the commodity has the potential to whip up trade anxieties in stalwart Republican areas.
The American Soybean Association called on the Trump administration "to reconsider the tariffs that led to this retaliation."
"He's hurting his base, he's really annoyed a lot of Republicans in the senate and the house," said Hufbauer.
"The way he's going now, he's got to compromise out to have a chance of keeping the Congress Republican in November."
"I think China is perfectly happy to play a game of chicken with the United States on this because they believe the US will blink first."
--
Trump - the big bully now realise that the bigger loser is going to be the Trump-led US !
Only inflicting great pain on Trump - will let this bully knows that - bullying will not pay.
Where is that Jessis Ng (guy disguise girl) and that Sheen Zhong San (that sounds like Sun Zhong San) --- this is the outcome of ya ya, talk big bully.
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