Who Gets Hurt More in U.S.-China Trade War?

The transcript discusses the recent US-China trade talks, highlighting the lack of progress and the potential for further escalation. It examines China's likely response to US tariffs and the impact on both economies, particularly in sensitive sectors like technology and consumer goods. The role of the Federal Reserve and political considerations, especially in the context of the upcoming US presidential election, are also explored.

What was the main reason the US-China trade talks were not expected to be constructive?

• The US had already decided on the tariffs.

• The meetings were held during a holiday season.

• There was a lack of interest from both parties.

• The timing was not ideal due to the PRC's 70th Anniversary.

What is the likely immediate response from China to the US's tariff announcements?

• A public statement condemning the US.

• Withdrawal from all trade talks.

• A cautious approach to assess the situation.

• Immediate escalation of tariffs.

What is a potential risk for the US if tariffs on Chinese goods escalate?

• Increased prices for US consumers.

• A stronger US dollar.

• A decrease in US exports.

• Improved trade relations with Europe.

How might the Federal Reserve's actions influence the US-China trade situation?

• By negotiating directly with China.

• By increasing interest rates.

• By providing financial support to US companies.

• By stepping in to support the President's trade policies.

How could the upcoming US presidential election affect President Trump's approach to the trade talks?

• He might focus on trade talks with Europe instead.

• He might seek a quick resolution to the trade talks.

• He might ignore the trade talks entirely.

• He might adopt a more aggressive stance depending on his opponent.