Crazy numbers coming out of China
A $100 billion (goods) surplus in March, a $275 billion goods surplus for q1 (up from $185 billion last year) and a surplus of nearly $1.1 trillion over the last 4 quarters... The easy explanation is tariff front running. But it seems "too easy" as an explanation. China's exports to the US and the EU look identical -- and there is no "reciprocal" tariff threat out of the EU. Same story with emerging markets: more exports and fewer imports. Source: Brad Setser @Brad_Setser on X
China has suspended exports of certain rare earth minerals and magnets to the U.S. and other countries
It’s also drafting new regulations to block these materials from reaching American companies Source: Stocktwits
Indeed...
Source: @AesPolitics1
Breaking news: China’s finance ministry said the increase from current additional levels of 84% would take effect from April 12.
Xi Jinping breaks silence, says Trump is bullying Europe and the entire world “There are no winners in tariff wars. Going against peace means isolating yourself,” Xi said during a meeting in Beijing with Spanish PM Pedro Sánchez — one of the hardest-hit in this trade war. The Chinese leader urged the EU to unite with Beijing against the U.S. president’s “unilateral intimidation.” Source: FT
Breaking news: China’s finance ministry said the increase from current additional levels of 84% would take effect from April 12.
Xi Jinping breaks silence, says Trump is bullying Europe and the entire world “There are no winners in tariff wars. Going against peace means isolating yourself,” Xi said during a meeting in Beijing with Spanish PM Pedro Sánchez — one of the hardest-hit in this trade war. The Chinese leader urged the EU to unite with Beijing against the U.S. president’s “unilateral intimidation.” Source: FT
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
