E=mc²...or is it E=Tariffs Times Confusion? China and the US Dance the Trade Tango!

The Universe Expands...With Tariffs?

Greetings fellow thinkers! It is I Albert Einstein back from observing the cosmos… and now apparently the utterly baffling world of international trade! China and the United States locked in a dance more complex than my theory of relativity are contemplating a negotiation. The topic? Tariffs of course! Seems the universe isn't the only thing expanding; so are these darn trade levies. As I once said “The important thing is not to stop questioning.” And my word do I have questions about this whole kerfuffle!

Sincerity and Relativity: A Delicate Balance

The Chinese with a wisdom that rivals my own (humility dear readers humility!) are asking the U.S. to remove these “unilateral tariffs.” They say failure to do so would indicate “an outright lack of sincerity.” Ah sincerity! A relative term indeed much like time and space. One side's sincerity is another's economic strategy wouldn't you agree? It reminds me of a quote I may or may not have said “God does not play dice with the universe.” But perhaps governments do with tariffs?

145%? That's a Lotta Relativity!

President Trump a fellow with… *ahem*… a unique approach to diplomacy has apparently slapped a whopping 145% tariff on some Chinese goods! That's almost as high as the number of times I’ve been asked to explain relativity at a cocktail party! China naturally retaliated with a mere 125%. It's like a mathematical equation gone wild. Perhaps we need a new branch of physics: 'Economic Relativity.' I’m sure it would be very… popular at parties.

Yuan Small Step for Currency Yuan Giant Leap for Mankind

The Chinese offshore yuan seems to have gotten a little pep in its step strengthening slightly. Meanwhile the Hang Seng index is jumping for joy! It’s enough to make one wonder if currencies and stock markets understand this better than us all. Maybe they have discovered a unified field theory! I should have invested my time in financial markets instead of physics...nah!

Rubio Speaks! Talks Loom?

Even Senator Rubio according to a news outlet (Fox News) believes that China wants to talk. But remember dear readers “The only sure way to avoid making mistakes is to have no new ideas.” So perhaps talking is itself a risk! A 'pinch of salt' is advised by Economist Intelligence Unit’s Tianchen Xu in understanding the situation who believes that behind the scenes some level of engagement may be taking place. I say add a dash of paprika.

To Blink or Not to Blink: That Is the Question

The ultimate question it seems is who will 'blink first.' Both sides want to appear strong resolute like a black hole in the middle of the galaxy. But perhaps just perhaps they will find a middle ground. Perhaps the tariff rates will be lowered to a slightly less apocalyptic 40% or 50%. As I always say “In the middle of difficulty lies opportunity.” Now if you'll excuse me I need a lie down. This economics stuff is even more confusing than quantum mechanics!