It looks so easy on paper. China can sell its holding of US Treasuries and/or weaken the yuan to offset the tariffs and boost exports. It is the first and easy answers from strategists, journalists, and some academics. Often times, it is presented a novel idea; as if diplomats, investors, and policymakers have not thought it. The point is not that China cannot sell its Treasury holding or that it cannot devalue the yuan. The point that has already been explored, arguably ad nauseam, is that the costs are too high. It is these costs that are often under-appreciated by the "no Grandpa, this is the way you drink tea" ... (full story)