Trump Sets Trap for China, Steps in It
His escalations make it harder for Xi to cut a face-saving deal.
The days of this polite deference are over.
Photographer: Jim Watson/AFP/Getty Images
Sun Tzu, who wrote a famous book about war, said, “To a surrounded enemy, you must leave a way of escape.” President Donald Trump, who didn't quite write a famous book about deals, could have followed that advice.
Trump, with a stronger economy and more tariff targets, has always seemed to have the upper hand in his trade war with China. But he keeps underestimating not only China’s capacity for economic pain but also the extent of Xi Jinping’s need to escape this conflict without looking like a loser, writes Bloomberg’s editorial board. So he keeps making such mistakes as last week’s unprovoked threat of more tariffs, to which China retaliated by, among other things, warning it was ready to launch a currency war. That threat hammered stocks and raised the risk of a recession. Despite starting off with a cornered opponent, Trump has blundered into his own trap, reducing the chances of an economy-saving deal.