Bloomberg Businessweek Trump Threatens China Tariffs, Sees ‘No Reason’ to Meet Xi
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Oct 10, 2025 Michael McKee, Bloomberg's international economics correspondent, dives into the escalating trade tensions between the U.S. and China. He discusses President Trump's threats of increased tariffs and the cancellation of his meeting with Xi Jinping, which sent shockwaves through global markets. McKee also touches upon potential impacts on the dollar, ongoing federal workforce reductions, and Argentina's financial situation. Additionally, he provides insights into the fragile ceasefire in Gaza and its implications for U.S. involvement.
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Markets React To Policy Uncertainty
- Markets sold off on Trump's tariff threat mainly due to uncertainty, not immediate measures.
- Michael McKee says the Chinese restrictions wouldn't hit until Nov/Dec, so this may be posturing.
Don't Assume Meetings Are Off
- Wait for confirmation before pricing in cancellation of high-level meetings.
- Michael McKee notes Trump said he sees no reason to meet but didn't formally cancel APEC talks.
Layoffs Can Be Political Theater
- Federal workforce reductions may be partly theater and bargaining leverage.
- McKee warns firings could be used as a political bargaining chip amid the shutdown.