Axios is reporting from their sources, Trump has no plans to end the trade war with China, at least not until they’ve suffered more. Now saddled with the worst performing market in the world to date, China seems to be on the losing end go this war of trade. After all, with very little importation of American goods into China, roughly $115b in 2017, China has much to lose.
Just a little back of the envelope math here, at $520b of Chinese imports into the country at a 25% traffic, US consumers also get dinged with a potential $130b+ in high costs for their cheap Chinese wares. In other words, that shit you buy in Target for $19.99 might now retail at $25.
The bottom line, as per Axios.
All signs suggest the trade war between the U.S. and China is just getting started. I’ve asked sources close to Trump whether he’s ever expressed any private concerns over whether his tariffs could backfire due to Chinese retaliation against American consumers or companies. Nobody I’ve spoken to has heard Trump express anything along these lines. He’s all in.
Nasdaq futs are only -4 now, up from -50.If you enjoy the content at iBankCoin, please follow us on Twitter