Trade tensions escalate as China accuses Washington of bullying
There are no signs of an easing in tensions over trade between the U.S. and China. Beijing has accused Washington of bullying tactics after it imposed another round of tariffs leading to more retaliation from China. President Trump says it's a dispute that the U.S. will win but there are experts who disagree. One of them is John Tamny, the Political and Economy Editor of Forbes magazine:
"The only closed economy is the global economy, if the Chinese economy weakens, so by definition does the U.S. economy weaken. Let's not forget that Apple, our most valuable company in the U.S., gets a quarter of its revenues from China sales. McDonald's No.2 market is China, Starbucks has 34 locations in China, wanting to go to 7,000. For the U.S. to go to war with China over trade is for the U.S. to enter a war that it cannot win."
While the Chinese stock market has been falling lately, there's been no drastic effect on Wall Street, but John Tamny thinks America will eventually be punished for its trade protectionism, which will ultimately have consequences on a global scale.