China Warns Countries of Appeasing US in Tariff War

China on Monday vows retaliation against countries that collude with the US in ways that compromise Beijing's interests, as the trade war between the world's two largest economies threatens to embroil other nations. 

China's warning comes as US President Donald Trump's administration are reportedly planning to use tariff negotiations to pressure US partners to limit their dealings with China. 

The Wall Street Journal reported Treasury Secretary Scott Bessent (right) telling investors in a closed-door meeting Tuesday he believes the trade war with China will “de-escalate” in the “very near future”. 

“No one thinks the current status quo is sustainable” with tariff rates at their current levels, he had asserted at the private investor summit in Washington DC, hosted by JPMorgan Chase. And predictably, markets responded favorably. 

In the meantime, the White House also sought to reassure Wall Street and their citizens when press secretary Karoline Leavitt (left) told reporters at a White House press briefing – also on Tuesday – that the administration have made progress in reaching the outlines of new trade agreements with 18 countries, although it’s not clear when any new deals might be finalized.

Not surprising, the International Monetary Fund are becoming perturbed. Global economic growth will slow to 2.8% this year, from 3.3% last year and significantly below the historical average, according to the IMF forecast in their World Economic Outlook report. 

And they gave fresh ammunition to critics of Washington’s trade policy, who allege the US will be the biggest loser in any trade war. They cut their forecast for the US economy by nearly a full percentage point to 1.8 percent, from 2.7 percent in January. That’s a bigger hit than either China or Canada (both 0.6 percent) or the eurozone (0.2 percent) will suffer, according to the Fund’s economists. At the same time, they also raised their inflation forecast for the US this year by a full percentage point to 3 percent. 

Americans have my sympathy! 😂😂😂