Leverage Will Determine if China or the U.S. Come Out on Top in Trade Conflict

Economists agree: trade is mutually beneficial, trade deficits don’t matter and a country that imposes tariffs hurts itself, more so if it faces retaliation. So why would President Donald Trump threaten steep tariffs on Chinese imports, rattling stock markets?
It’s not just because Mr. Trump rejects the economics. It’s also because this is a negotiation, and a negotiator must show a tolerance for pain if his demands aren’t met. For Mr. Trump to succeed, China must believe its pain will exceed that of the U.S. in a trade war and settle on his terms.
Whether he’s right depends heavily on who has Read More

Source:: wsj