China just launched retaliatory tariffs of 84% on US products
China relies far less on US imports than the other way around, so this is essentially just them beating their chests and goading Trump into raising tariffs again
American companies that have probably already bought and paid for tens of billions of dollars worth of Chinese products are going to have to either pay double (most likely far more) for critical elements of their businesses when they arrive in port, or turn them away, leaving them either in massive debt, or unable to function
combined with tariffs on every other country and no way to adequately replace them domestically, small American businesses are gonna start collapsing like the building 7 if the government doesn’t step in and save them
bond yields are skyrocketing, stocks are plummeting, the fed isn’t doing shit out of, possibly spite, and people are so tuned in that it could soon it could trigger a bank run of epic proportions
enemies and even allies are threatening to sell of their bonds, hurting both US debt and the dollar in the meantime.
What the actual fuck can he do to win this trade war now? He’s got no way for the majority of American people, be in consumers or businesses, big or small, to brave the hurricane of shit coming their way. The fed wants him to stop all this so they aren’t gonna help him bail out the people by whirling on the printer. So isn’t the only option to admit defeat and de-escalate on China?
I mean hell, he could kill two birds with one stone. By admitting defeat he saves the world economy, and he essentially gives Xi Jingping his much wanted legacy achievement, which would potentially delay a Taiwanese invasion until the next president comes along.