January 4, 2017

"Asia watchers are anxiously awaiting US President-elect Donald Trump's first actions after his inauguration on January 20, in particular whether he will carry out his threat of designating China as a currency manipulator on his first day in office. Such a designation will allow his administration to institute punitive tariffs on Chinese imports.

John Fraher, Flavia Krause-Jackson and Mira Rojanasakul sketch a possible scenario of how a Sino-US trade war might thus unfold: 'Slamming what he calls #CrookedChina, Trump tweets at 3:17 a.m. on the morning of his inauguration that he's planning to label the country a currency manipulator and slap ‘huge’ tariffs on incoming imports. By the time he's on his way to the Capitol, China has already started to retaliate by devaluing the yuan, canceling orders for Boeing jets and blocking iPhone sales.'"

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