CHINA LIKELY TO IMPOSE $BILLIONS MORE IN TARIFFS

   This morning the market has been on edge over, and traders are obssessed with just one question: how will China retaliate to Trump's trade war and tariffs... further. After all, the initial response of a modest 15-25% tariff on $3 billion in 128, mostly agricultural, products, seemed laughably small and appeared to be more of a warning shot than a real response to Trump's $50BN in Section 301 tariffs.
   One answer was revealed moments ago when as we reported that China’s ambassador to the US Cui Tiankai did not rule out the possibility of scaling back purchases of Treasuries in response to Trump's tariffs.
   But the more likely reaction is that China will simply escalate with a "brute force" tit-for-tat retaliation, and as Citi notes, the editor-in-chief of the state-controlled Chinese newspaper Global Times, Hu Xijin, confirmed precisely that when he tweeted: "I learned that Chinese govt is determined to strike back."