More economists weigh in on trade negotiations.
https://www.google.com/amp/s/www.bloomberg.com/amp/view/articles/2018-03-26/trump-and-china-are-in-trade-spat-not-tariff-war
Excerpt:
First of all, China responded to Trump’s $60 billion in tariffs with a $3 billion tariff retaliation, 1/20th of the initial amount. That’s a sign that China is seeking reconciliation rather than escalation. In any case, the $60 billion is less than 3 percent of China’s global exports, and the move could lower its gross domestic product by as little as 0.1 percent.
Don’t be surprised if the penalties are smaller yet. It is common for Trump to talk big, seeking the impressive headline or tweet, but to follow up with much less. Steel import restrictions were talked up at the beginning of March, but after all the exemptions granted, they don’t cover most U.S. steel imports. Don’t be surprised if Trump ends up granting China tariff exemptions to various American importers. In addition to helping the stock market, that would give Trump another political carrot and stick. As for the pressures on the Chinese side, the Wall Street Journal reported Monday that talks to improve U.S. access to Chinese markets are quietly under way. And the market responded positively.