Opinion
Passengers in trade train wreck
The best hope for Australians is that President Trump's trade war flips from being a political advantage to a political liability.
Warren HoganThis week marked a critical moment in US President Donald Trump’s trade war with China. The Chinese have responded to new US tariff measures with an unexpected weakening of their currency, which was soon followed by the US Treasury labelling China a currency manipulator. In trade negation terms, this is effectively a declaration of war by the US on China.
The trade war is quickly becoming a currency war, which is a much more dangerous proposition for the global economy. Trade barriers have a real but gradual impact on underlying economic activity, but currency wars can have immediate and large impacts on capital flows and investment.
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