Trade War with China #2
The US targets postal deliveries out of China and Hong Kong this morning and China fires back with a thinly veiled threat to probe into the Apple App Store fees.
The news on Apple broke just before pre-market trade opened. The stock is down.
The Chinese playbook is becoming a bit clearer. Focus retaliatory efforts on those points of leverage which (1) can have the most immediate impact and (2) not be viewed as being overly painful to the American populace.
Furthermore, China is clearly unwilling to negotiate like Mexico, Canada, Panama, Colombia. There seems to be a desire to call out Trump’s threat. Cards on the table.
Things could turn real ugly, real fast.
