Primed for economic combat, President Donald Trump set in motion tariffs on as much as $60 billion in Chinese imports to the U.S. on Thursday and accused the Chinese of high-tech thievery, picking a fight that could push the global heavyweights into a trade war.
Stating that the trade war will be particularly bad for China, Paul Kitney, Chief Equity Strategist – Asia Pacific at Daiwa Capital Markets said, “a trade war would benefit no one” adding “The order of magnitude is much higher for China. So it is not in China’s interest to respond aggressively to the US.”
He also stated that the economies that depend much more on trade rather than their domestic economies will be more exposed.