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Wednesday, September 19, 2018

China has retaliated against US tariffs with a muted response.

https://sg.finance.yahoo.com/news/china-trade-war-u-replace-imports-state-media-004332044--business.html

China will impose a 5% and 10% against $60b of US goods for an in-kind retaliation.  However, this is a much-muted response that I believe is just a face-saving grace because China doesn't want to be seen as meek.

Now that China has retaliated, Trump has no choice but to impose phase 3 tariffs as stipulated previously lest he will be deemed as breaking his promise.

After this muted response, I believe China is preparing for Trump's phase 3 tariffs with a much stronger response.

2 comments:

Eric Ho said...

https://sg.finance.yahoo.com/news/china-penalise-60-billion-u-imports-tit-tat-063835954--sector.html

Eric Ho said...

https://sg.finance.yahoo.com/news/china-paper-warns-wont-play-defence-trade-trump-083247803--business.html

As predicted, China will respond with much stronger tactics in the future instead of the recent muted response.