Goldman: Trump's Decision To Delay Tariffs Was Seen As Weakness By China, And Escalated The Trade War
Ten days ago, we reported that in the aftermath of Trump's unexpected concession when the US unilaterally decided to delay the imposition of tariffs on Chinese consumer products from September 1 to December 15, China mocked Trump's act as "proof he is losing the trade war." Today, Goldman confirms as much, and points out that in a paradoxical twist, it was Trump's delay that may have made trade war with China even more complicated. In a note discussing China's retaliatory tariffs, the bank's China economist Yu Song writes that " the recent US decision to delay some tariffs could even paradoxically prolong the trade war since it has been seen as a sign of weakness, at least by some in China, and could make the Chinese government less willing to soften its stance to reach a compromise ." Of course, this is a two way street, because as we said on August 13," what is likely is that any widespread shift in sentiment that Trump retreated and waved