China warned it would take ‘countermeasures’ against U.S. products if Trump increases tariffs. It could suspend all agricultural purchases to inflict an enormous amount of economic pain on America’s farmers and China dependent businesses. Both JP Morgan and Goldman Sachs are telling its clients and professional traders – Trump will pull the trigger Friday as threatened.
By James DiGeorgia
Goldman Sachs and JP Morgan are advising its professional traders, money managers and its clients that any hope of an 11th hour negotiated a settlement between China and the United States to end President Trump’s trade war – isn’t going to happen.
China is vowing it will take immediate action in response to President Trump’s raising of tariffs, but the country can’t impose new reciprocal tariffs on $200bn of its U.S. imports because China only bought $179bn of goods from the United States last year.
However, China could raise existing tariffs, targeting U.S. agricultural imports such as soybeans. China could also…
· Stop negotiating completely.
· Impose non-tariff barriers; restricting U.S. companies access to China’s economy
· Make visas impossible to come by.
· Launch a currency war, by intentionally weakening the yuan to make Chinese goods more attractive to US buyers which in effect, cushioning the impact of new tariffs.
· It could also bankrupt thousands of red state farmers by canceling and stopping its annual $9 billion U.S. agriculture purchases; they had promised to buy as much as $30 billion a year.
· It could also start dumping U.S. treasuries and bonds forcing much higher interest rates.
· It could also embargo Taiwan using its growing Navy forces.
· It could sell Aircraft Carrier-killing missiles to Iran.
· Refuse to honor U.S. sanctions on North Korea, and throw a monkey wrench into any other U.S. sponsored effort on the international frontier.
Meanwhile, estimates of the impact of raising tariffs to 25%, and expanding them to another $300 billion of products and services, will cut an estimated.03% of Chinese GNP. China is growing at 6.3%, slightly above President Xi’s stated target for China’s economic growth.
Trump could also find that while Russian interference in 2016 helped him get elected, he could discover that they could respond to Secretary Hillary Clinton’s recent call to them … If China is listening, if you can find Trump’s Tax returns …