by Martin Armstrong
Armstrong Economics
The U.S.-China trade war is an ongoing economic conflict that began in January 2018, characterized by the imposition of tariffs and trade barriers by both countries. Recently, tensions escalated as the U.S. raised tariffs on Chinese goods to 145%, prompting China to retaliate with tariffs of 125% on U.S. imports, affecting global supply chains and market stability.
Trump’s decision not to grant China the same reprieve as other nations explained: “China wants to make a deal, they just don’t know how quite to go about it.” I disagree. If I were China, I would do a full embargo, and the Achilles’ heel in this trade war is more than just the manufacture of values for municipalities – the big ones, steel and aluminum, but also medicines. Personally, I would put a full embargo on everything, and without the medicines, people would be screaming, and their lives would be put in danger. I have dealt with Asia for some 40 years. You do not do this sort of thing publicly. It is an insult and a loss of face that forces China not to yield.