
NY Times: For U.S. and China, a Risky Game of Chicken With No Off-Ramp in Sight
Neither side wants to look weak by backing down on tariffs. But if their trade relationship collapses, the global consequences could be profound.
A doubling of American tariffs on Chinese goods. Nationalist Chinese bloggers comparing President Trump’s levies to a declaration of war. China’s Foreign Ministry vowing that Beijing will “fight to the end.”
For years, the world’s two biggest powers have flirted with the idea of an economic decoupling as tensions between them have risen. The acceleration this week, in both actions and words, of their trade relationship’s deterioration has made the prospect of such a divorce seem closer than ever.
(more…)