China pledges it will fight back firmly if Trump goes ahead and publishes list of additional tariffs

good for usdjpy bad for usd

China defending FREE TRADE....?
lol,
that's almost as funny as the assertion that North Korea is self sufficient

As an investor, Im getting concerned by this escalating Sino-US trade war, which looks increasingly likely to get worse? Obviously if this continues, its going to hurt both economies, and rather than safeguard jobs, will put prosperity in many industries at risk and make consumers the real losers. IMHO its one US administration may find difficult to win.. since US democracy is much more reactive to domestic political pressure from those hurt than is Chinese communist system... and the biggest hit is going to be the consumer? Also current trend of doubling down is a high risk tactic in any trading situation.
I hope not but looks like that. Cant see it being good for equities.

Temporary market views trade war as some worldwide problem hitting everyone with the same force. So the USD seems to be a reasonable place to hide in the short-term.

However, in fact, it will devastate the US and China the most. It is hard to see how capital will keep flowing into the USD, a currency which will be at severe war with the whole world.

I think it is a matter of time when the crisis will show up in US PMI's, NFP and other data. As well as flows into other reserve currencies than the USD.

It will hurt China not as much as the US. The world en large is depending on China for low cost manufacturing but China can easily obtain similar products from other countries, especially now that Trump has dropped support for South Korea and Europe. The US government forgets the lessons learned in the 18th century when there was a trade war between the US and Britain that started because the US had no respect for British IP. (en.wikipedia.org/wiki/Tariffs_in_United_States_history)

I am also reminded of the printing of the Deutschmark prior to WW II trying to shore up their economy that was based on steel. We all know how that ended.

The US cannot have their cake and eat it too: if the US did not want China to obtain IP then they should not educate the Chinese students or set up factories in China. But greed of the big players took over: produce cheaply in China and get income for educating the Chinese in the US.

There might be a temporary boost in the US markets but imho the end result will be more innovation in China and a slowdown of the US economy. The Chinese will be the dominant world power by 2050 and the US dollar will no longer be the world's reserve currency, just like the Pound and the Deutschmark and even the Dutch guilder once were. Long term the outlook for the US dollar is negative, no doubt about that.

Be careful of making sense in these forums.....