Folks, it’s not a “skirmish”. On the scale of trade warfare we are now at DEFCON 2.
At this very moment, the US is taxing $250 billion of Chinese imports or nearly half the total flow; and China is taxing $110 billion of its imports from the US or 85% of the flow.
And it’s soon going full monte. The Donald has repeatedly threatened to tariff the remaining $267 billion of Chinese imports if Beijing retaliates against his $200 billion, but, self-evidently, they already have.
So it’s time to start believing that the Donald will do what he says—-unhinged or not—under the trade file. That’s because he’s discovered the imperial presidency can virtually raise tariffs at will by abusing the rubbery enabling acts passed decades ago by Congresses which never imagined the Red Ponzi nor the Orange Swan which arose therefrom.