[US vs. China Tariff War]
Trump said that now is the time to buy stocks, and four hours later, he announced a 90-day tariff suspension on all countries except China.
The reason for the suspension is because people are anxious.
Trump raised the tariffs on China from the existing 104% to 21%, bringing it up to 125%.
The reason he raised it by 21% is that Trump likes to round numbers, so he wants the last digit to be 0 or 5. There's no other calculation method.ㅎ
In the tariff war, China has no choice but to fight back against the US.
However, China will likely respond with cards such as: 1) holding a large amount of US Treasury bonds after Japan; 2) exchange rate manipulation; and 3) suspension of rare earth exports.
If US Treasury bond yields rise, bond prices will fall, and Choi Sang-mok, the first vice minister of finance who invested in US Treasury bonds, will also suffer losses.
The whole world is struggling with the chicken game between Trump and Xi Jinping.
Today is CPI announcement day.
Fight on!
