So the big worry among free traders was that President Donald Trump would see China’s retaliation to his initial tariffs, get mad, and threaten to slap even more tariffs on China. And that’s exactly what happened on Thursday night, pushing the U.S. to the brink of a serious trade war, NEC Director Larry Kudlow’s reassuring comments notwithstanding.
From the President’s statement issued well after the market close: “Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers. In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs.
Cumberland Advisor’s David Kotok emails: “US policy on a terrible course. Everyone loses in a trade war. Saying they get hurt more than we get hurt is a specious argument. Not one economist says there is a win. Jobs contract. GDP growth is reduced. Inflation rises. This is an act of madness. The trained folks in the Trump Administration know it. They know this is wrong.”
Read the full article here: Politico