China is going to run out of things they can put a tariff on far sooner than the US. It’s the US that has a trade deficit with China, not China with the US. For whatever its worth, this has gone ballistic. China cannot back down. Their economy is on the ropes. Massive ghost cities still appear on the balance sheet as assets when they are liabilities, massive investments in countries like Venezuela that will have to be written off also still appear as assets, and so it goes on forever. If one took a fine comb and went through all the assets China shows in order to test them for their real value, we are in for a big boom. Because the bubble will pop. And that’s something the regime cannot allow to happen, so they dig in hoping for a miracle just like GOT’s Cersei hoped a miracle would emerge to save her – until it did not.
China will raise tariffs on $60 billion in U.S. goods in retaliation for the U.S. decision to hike duties on Chinese goods, the Chinese Finance Ministry said Monday.