Thursday, April 10, 2025

Take on Trump's triple-digit tariff on China

With tariffs now at 145% on China (not mentioning the 25% still in place from the previous Trump administration) we are nearing 200% territory. We know that this will basically end trade between the countries which will have devastating effects on both. China needs the US consumer but the US consumer just as much needs the Chinese producer.
We know that XI isn't going to back down to a threat like this which he sees as existential and Trump has too much pride to back down, so it feels like this could go on for a while. If he had imposed this on a smaller country, they would have caved under the pressure much like Colombia a few months ago The only thing that makes me think there could be a quick end was because the ratcheting up went so quickly, and was done on emotions not economic rationale. So maybe, just maybe, cooler heads prevail

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