Despite some negative stocks today, Donald Trump’s tariff moves are causing major reprocussions in China, and are causing major stomache aches in Beijing.
China needs us more than we need them. Now they’re threatening to get rid of the Treasury Notes they hold.
According to Forbes Magazine, China is losing the trade war.
China Trade Data in USD (YoY)
Exports: -4.4% versus estimate 2% and November’s 5.4%
Imports: -7.6% versus estimate 4.5% and November’s 3%
Trade Balance: $57 billion versus estimate $51 billion and November’s $44 billion
Exports to the U.S. fell 3.7%, the first nonseasonal decline since October 2016. That would indicate an end to the pre-tariff purchasing rush by U.S. companies in the third quarter and into the fourth. Exports to the U.S. had previously climbed over 12% for three consecutive months.