Combat China or Accelerate the Economy. Trump has to Choose One.

Mr. Donald Trump's conflicting signals about easing the exacerbating war with China that is threatening the global economy serves as a cautionary tale to limit his actions. He is likely to be facing the quandary of either having a boost in the US economy to release the distress of investors around the planet or to end the American-Chinese commercial relationship. But the trade war imperils Trump to pick between the two.

The trade tension between the US and China has been persistently escalating for about a year now and the expectations for markets is that it will continue to rumble on, there will be tit-for-tat back and forth. There is a growing concern outside the US that the trade war could undermine the already shaky global growth. A CBS poll conducted by YouGov, released on Sunday, revealed that only 38% of the responders said that they were feeling optimistic about the future of the US economy and 54% others said that Trump tries to sugarcoat the economy.6% were confounded.

The worse the confrontation gets, the more tangible is the consequence for American consumers who face rising prices on goods imported from China. These items include smartphones and other technology that have transformed modern lifestyle. Trump has vaguely insisted that China and not US consumers are paying the price for the tariffs. Whereas for China, lower export numbers mean fewer jobs, which imposes direct impact on the Chinese economy.

The potential paradigms of the dissolution of American-Chinese commercial relationship are numerous, but none of them involve strengthening of the world economy.

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