China remains in deflation
*CHINA MARCH CONSUMER PRICES FALL 0.1% Y/Y; EST. 0% *CHINA MARCH PRODUCER PRICES FALL 2.5% Y/Y; EST. -2.3% Trade war with the US won't help Source: zerohedge @zerohedge
US tariffs on China are set to SKYROCKET off the charts:
If China does not withdraw its 34% tariff increase the US will impose ADDITIONAL 50% tariffs on China from April 9. This would bring the US effective tariff rate on China to ~108% on top of the previously announced 58%. Source: Global Markets Investor, Goldman Sachs
Here's another retaliation from china...
Beijing just crossed a line in the sand. The PBOC fixing was on the other side of the closely watched 7.20 "devaluation" line, first time since 2023. Offshore yuan tumbles and is about to hit a record low against the USD. Source: zerohedge
Oups! When the trade war clashes with the yield war..
It seems that china is ready to retaliate by weaponizing US Treasuries‼️As the US threatens to impose ADDITIONAL Tariffs on China of 50%, effective April 9th, China responds by selling another $50BN in Treasuries ‼️Oh by the way, the hashtag#yield on 10Ys is now almost unchanged from Liberation Day! 😨 Source: zerohedge, Bloomberg
Trump now threatens China with 104% tariffs!
Trump is now threatening China with FURTHER 50% tariffs if China does not withdraw its 34% by today. 😱 104% tariff on China in 24 hours if no deal.
Oups! When the trade war clashes with the yield war...
It seems that China is ready to retaliate by weaponizing US Treasuries‼️As the US threatens to impose ADDITIONAL Tariffs on China of 50%, effective April 9th, China responds by selling another $50BN in Treasuries ‼️Oh by the way, the yield on 10Ys is now almost unchanged from Liberation Day! 😨 Source: zerohedge, Bloomberg
Here's another retaliation from China...
Beijing just crossed a line in the sand. The PBOC fixing was on the other side of the closely watched 7.20 "devaluation" line, first time since 2023. Offshore yuan tumbles and is about to hit a record low against the USD. Source: zerohedge
China is getting ready to retaliate.
Putting upward pressure on US Treasuries (by dumping UST) could be their own "art of a deal"... Other options: China has basically three options: 1. Concede defeat to whatever terms Trump demands 2. Devalue the yuan by 20-40% (watch the offshore yuan this morning...) 3. Unleash biggest fiscal stimulus in its history (talking $2-3 trillion)
