It was the second tit-for-tat exchange of tariff threats this week between the world's two largest economies, and it sent the stock market into wild swings based on investors' fears of a trade war.
"This is not a trade war yet. It's more like probing actions prior to a battle, with both sides gauging how far they can push the other without full-blown action," said George Washington University economist Michael Moore.
For Mr. Trump, the tariffs and other get-tough trade policies made good on a top campaign promise to crack down on China's trade abuses.
"We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!" Mr. Trump tweeted.
Denise Bode, a tax and trade analyst at a Washington law firm, said a full-blown trade war is possible but it is more likely that Mr. Trump will make a deal.
The S&P 500 index and the Dow Jones industrial average erased early losses - the Dow fell as much as 501 points - and rallied to move higher Wednesday as investors hedged their bets on the likelihood of an all-out U.S.-China trade war.
Larry Kudlow, director of the president's National Economic Council, tried to tamp down concerns about a trade war, saying a negotiated resolution is more likely.
https://www.washingtontimes.com/news/2018/apr/4/us-china-trade-war-fears-send-stock-market-wild-sw/
"This is not a trade war yet. It's more like probing actions prior to a battle, with both sides gauging how far they can push the other without full-blown action," said George Washington University economist Michael Moore.
For Mr. Trump, the tariffs and other get-tough trade policies made good on a top campaign promise to crack down on China's trade abuses.
"We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!" Mr. Trump tweeted.
Denise Bode, a tax and trade analyst at a Washington law firm, said a full-blown trade war is possible but it is more likely that Mr. Trump will make a deal.
The S&P 500 index and the Dow Jones industrial average erased early losses - the Dow fell as much as 501 points - and rallied to move higher Wednesday as investors hedged their bets on the likelihood of an all-out U.S.-China trade war.
Larry Kudlow, director of the president's National Economic Council, tried to tamp down concerns about a trade war, saying a negotiated resolution is more likely.
https://www.washingtontimes.com/news/2018/apr/4/us-china-trade-war-fears-send-stock-market-wild-sw/
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