On Friday the Trump administration announced it will impose a 25 percent tariff on up to $50 billion in Chinese goods in an effort to protect U.S. intellectual property and technology. The decision brought an immediate backlash from Beijing. China in retaliation said it will introduce taxation measures of the same scale and strength. As the world's two superpowers inch closer to a trade war, market experts are asking: Is this a game the United States can win?
I suspect the real answer is twofold: In part, the president wants to be seen as reversing the loss of jobs and intellectual property to China between 2001 and, say, 2010. But since that horse has left the barn, he needs some other animals to round up.
His stated objective is to reduce the size of the U.S–China trade deficitfrom an estimated $370 billion to $200 billion by 2020.