Is the Trump Put Back? Markets React to Economic Shockwave

"tariffs this high are likely to halt most of the $700 billion in trade that China and the US would otherwise be conducting this year."

"China holds somewhere between 700 and $900 billion in US treasuries and around 3 trillion USD in cash reserves of course dumping significant branches of these holdings quickly is a nuclear option that would have severe consequences for the US dollar but this is unlikely because it would devalue China's remaining reserves of US dollar assets and that's certainly not in China's interests however a slow dumping is more plausible and with China being the second largest holder of US bonds there is always the option of causing trouble for the US Treasury market"

"historically speaking US fighter jet development is prone to delays at the best of times the current fifth generation F-35 was first conceived in the early90s first flew in 2006 and finally entered service with the US Air Force in 2016 and the Navy in 2019 this was despite the ready availability of rare earth metals from China during this period recent announcements indicate that Boeing has been awarded a contract to develop a sixth generation fighter jet expected to enter service sometime in the 2030s it's not clear though if this ambitious timeline has accounted for any material supply shocks but as China is already flying prototypes of its own sixth generation fighters it's no wonder Washington is prepared to take such drastic measures to develop new supply chains"