CHINA/ECONOMY/ELECTION/TARIFFS/TRUMP AS PRESIDENT: “President Donald Trump is gambling that the American economy can stomach even steeper tariffs on China as he heads toward a 2020 reelection bid. As trade talks between Washington and Beijing started to fall apart this week, the president’s top trade and economic advisers were urging Trump to move forward with the tariffs that took effect Friday [5-10-19], according to current and former administration officials and close White House advisers. And Trump has appeared resolute this week on the need for tariffs, added two administration officials. Wall Street economists warn the strategy could incite a costly trade war and derail the economy just as Trump embarks on his reelection campaign. But Trump and top administration officials feel confident that the tariffs will hurt the Chinese economy more than the United States‘, ultimately driving China back to the negotiations, according to one person familiar with the talks. Escalating his trade fight with China is a huge wager for a president who constantly touts the growing economy and surging stock market as evidence of his presidency’s success. At the same time, Trump won election in part by vowing that he would stand up to China on trade and economics in a way that his predecessors never dared.”
–Nancy Cook and ben White, “Trump gambles with economy on China showdown as 2020 looms,” Politico, May 9, 2019 11:10 pm