Thanks for this Peter. Obviously I’m no expert in this area but I would have thought that with the thousands of people that work in these governments that they would be able to come of with something more intelligent that just tit for tat tariffs? Can we not have a bit more chess and not checkers? Or are tariffs the the final resort?
China Afternoon Missive
Now the commentariat shifts focus to #China. No deal was struck with the US, meaning that Xi Jinping was unwilling to take the Trump call, unlike Trudeau and Sheinbaum, and now the 10% tariffs are formally on. For its part, China has followed with 15% tariffs on certain US imports albeit starting next week.
Expect there to be an ungodly deluge of headlines and social media commentary. Please take all the “hot takes” with a large grain of salt. The US is operating from a position of bellicosity, nothing more. Moreover, when you take a moment and actually consider all pressure points from both sides, you’ll quickly find that China is equally positioned if not the party with actual leverage.
The only certainty is that there’ll be more volatility across all asset classes. Stay safe out there fam
China to levy additional tariffs of up to 15% on select U.S. imports starting Feb. 10 https://www.cnbc.com/2025/02/04/china-levies-tariffs-on-select-us-imports-starting-feb-10.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
Discussion
Thanks for the note. There are probably hundreds of reasons why the process isn’t better thought out and executed upon. I, for one, believe that the American leadership - regardless of which party - is guided by a combination of hubris and hypocrisy.
More to the point, the thinking is 20th Century Cold War which simply isn’t conducive in the year 2025.