“Junkie’s Dilemma” Trade Wars with China Start Monday: Major Economic Shock Possible
“Junkie’s Dilemma” Trade Wars with China Start Monday: Major Economic Shock Possible by Mike Shedlock – Mish Talk
President Donald Trump is ready to launch a new trade crackdown on China next week according to a Trump administration official.
Trump’s goal (at least one of them) is to get China to crack down on North Korea. But China knows that Trump won’t stop with North Korea. Trump will want more.
Meanwhile, China does not want North Korea destabilized more.
Deutsche Welle reports US President Donald Trump ponders trade war with China.
Trump has ordered a review of Chinese trade practices that force foreign firms to partner with Chinese firms. This comes shortly after he praised Beijing for its support of harsher UN sanctions on North Korea.
While US President Donald Trump presses China to step up pressure against North Korea, he is considering sparking a trade war with the world’s second largest economy.
On Monday, Trump plans to sign an executive order asking his trade office to investigate China for its alleged theft of American technology and intellectual property.
The president, who is vacationing at his golf club in the state of New Jersey, said Friday that he planned to return to Washington on Monday “for a very important meeting” and “we’re going to have a pretty big press conference.”
Trade Crackdown Coming Monday
Politico reports Trade Crackdown Coming Monday.
Trump on Monday will call for an investigation into China over allegations that the nation violated U.S. intellectual property rights and forced technology transfers, the official said.
Two Commerce Department reports examining whether to restrict steel and aluminum imports on national security grounds were expected by the end of June but have been bottled up in an internal review. Trading partners raised threats of retaliation and domestic steel users complained of being hurt by price increases and restricted supply.
Section 301 allows the U.S. to take unilateral action against countries that impose barriers to U.S. exports. That could take the form of increased import duties, but that would likely violate WTO rules. So the administration could look for some other form of retaliation, like restricting Chinese investment in the United States.
Major Economic Shock Possible