Trump Digs In Against China as Xi Seeks Allies

In Donald Trump’s latest volley in the trade war, the US leader said China deserved the steep tariffs he imposed on their exports and predicted Beijing could find a way to reduce their impact on American consumers. “China probably will eat those tariffs,” Trump said in an interview with ABC News.

But will China do anything of the sort? Asia’s biggest economy is certainly under pressure, but it’s it’s shown it can step in with domestic stimulus when needed. Factory activity has revealed early damage of Trump’s tariffs, prompting calls for a speedy policy boost. Meanwhile, President Xi Jinping’s diplomats are fanning out across the world with a clear message for countries cutting deals with Trump: The US is a bully that can’t be trusted. This effort is playing out inside the 90-day window Trump has granted all nations, except China, to strike trade deals during a tariff reprieve. Politically, it may be too early to blink.

Trump isn’t letting up at home either. Marking his 100th day in office, the president renewed criticism of Federal Reserve Chairman Jerome Powell during a Tuesday event. “Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job,” Trump said at a rally just outside of Detroit, Michigan. The denunciation came even though earlier this month he said he did not plan to fire the central bank chief.