Anyone hoping the current trade war might have stalled will be sorely mistaken today. While Trump says he plans to to impose an additional $200 bn of tariffs on China in September, he has just said he is ready to go to a full $500 bn of tariffs on Chinese imports. When asked if he thought his plans would cause the stock markets to drop, Trump responded “Well, if it does, it does. Look, I'm not doing this for politics. I'm doing this to do this right thing for our country”.
FINSUM: We think the US does currently get a raw deal in a lot of foreign trade, especially with China. However, the manner in which this “negotiation” is proceeding does seem to be unnecessarily disruptive.