Trump Says He Could Impose More Tariffs on China

The transcript discusses the ongoing trade tensions between the US and China, focusing on tariffs and their potential impact on the Chinese economy. It highlights the Trump administration's stance on maintaining tariffs until China fulfills its promises, and Beijing's concerns about the lack of a clear path to a lasting deal. The transcript also covers China's strategy regarding its US Treasury holdings, noting a decline in these holdings and China's efforts to diversify its investments, including increasing gold purchases. Despite speculation, China is unlikely to weaponize its Treasury holdings due to potential adverse effects on its economy.

What is one reason the Trump administration insists on keeping tariffs in place?

• To reduce the US trade deficit

• To increase US exports

• To ensure China fulfills its promises

• To strengthen diplomatic ties

What economic forecast did Bloomberg Economics make if tariffs continue to rise?

• Global trade will increase

• China's growth will exceed 7%

• China's growth could fall below 6%

• The US economy will shrink

What action did Premier Li Keqiang suggest China might take if tariffs escalate?

• Increase tariffs on US goods

• Cut diplomatic ties with the US

• Adjust fiscal and monetary policy

• Seek new trade partners

What trend is observed in China's holdings of US Treasurys?

• They have been increasing steadily

• They have fluctuated unpredictably

• They have remained constant

• They have been on a steady decline

Why is China unlikely to significantly cut its US Treasury holdings?

• China has no surplus savings

• The US bond market is unsafe

• There are better investment options

• It would harm China's exports