China Caught in Massive Tariff Showdown

Trump said people were getting "yippy" in tariffs reversal

This morning over dim sum all the chatter was over US President Donald Trump imposing 104 percent tariffs on China.

About an hour later we saw stocks that were blood red were suddenly in the green -- Trump had reversed course and dropped worldwide tariffs down to 10 percent and 90 day pause -- except for China, which he imposed a jaw-dropping 125 percent.

Canada and Mexico still face 25 percent tariffs on cars, steel and aluminium.

Leavitt adamant tariff U-turn was art of the deal

The S&P 500 shot up more than 9 percent, but still not back "to normal". 

Trump gave in after massive selling on the bond markets, which are supposed to be a place of refuge for shell-shocked investors. Instead they were worried a recession was coming, if not here already.

"Over the last few days it looked pretty glum," Trump said. "I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid."

His spokesperson Karoline Leavitt insisted to the media the move was part of the plan all along.

"Many of you in the media clearly missed The Art of the Deal," she said referring to Trump's book on negotiating. "You clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact we've seen the opposite effect."

As for the 125 percent tariffs, Trump is expecting Xi to call him to negotiate... 

Talk about pushing to the limit. But China may not back down, and it's strong enough not to. Perhaps this is Beijing's way to call Trump's bluff?

One of the Chinese captured in Ukraine

Another story that grabbed headlines was Chinese citizens fighting in Ukraine for Russia. Ukrainian President Volodymr Zelensky stated two were captured and showed a video of them being interrogated. They had Chinese identification and bank cards.

The Ukrainian leader later claimed there were over 150 such Chinese citizens who were recruited by Russia to fight; unlike the North Korean soldiers, they were not officially sent there by Beijing.

Nevertheless, Chinese foreign ministry spokesman Lin Jian said Bejing was "verifying the relevant situation", but dismissed the suggestion that more Chinese citizens were participating in the war. 

Officially Beijing has claimed to be neutral and pushing for peace, but has diplomatically and financially backed Moscow by buying large quantities of oil. 

Zelensky claimed Russia recruited the Chinese citizens via social media, and it was a sign that Russian President Vladimir Putin was not interested in peace.

"Ukraine believes that such blatant involvement of Chinese citizens in hostilities on the territory of Ukraine during the war of aggression is a deliberate step toward the expansion of the war, and is yet another indication that Moscow simply needs to drag out the fighting," Zelensky said.