The United States continues to escalate the trade war with China despite the damage it does at home. In the second week of July, the U.S. announced plans to add 10 percent tariffs on $200 billion worth of goods. Now the government plans to bump these tariffs to 25 percent, the details of which will be included in the public hearing and comment phases later this month. The tariffs already in place are starting to hurt China, as Beijing sees weakening investment in factories, low household consumption and rising corporate defaults. (This is also a product of China’s credit squeeze, of course.) Some companies are reportedly thinking of leaving the country. Meanwhile, U.S. farmers are reporting losses despite $12 billion worth of compensation funding. The mayor of Los Angeles has said that the trade war has stunted growth, depressed local port cargo and cost the city some 200,000 jobs. The U.S. Chamber of Commerce also warned that if the government were to extend financial aid packages t
Daily Memo: Taking Stock of the Trade War, Preventing Chinese Protests, Wargaming in Israel
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