As the White House is about to escalate trade frictions along with nuclear risks, global economic prospects will become more clouded and markets more volatile.
On Monday, US President Donald Trump called for an investigation against China over US intellectual property practices and technology transfers. As a result, United States Trade Representative Robert Lighthizer started an investigation against China under Section 301 of the Trade Act of 1974. Although the investigation will not lead to immediate sanctions, it could result in steep tariffs on Chinese goods.
The US is escalating economic tensions at a time when strategic risks loom, from the Democratic People's Republic of Korea in Asia to Charlottesville in Virginia. Now, trade pragmatism is dead and the path has been paved to trade wars.
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