As the U.S. and China move toward initiating trade talks, this expert says that China could use “geopolitical game theory” by selling all its U.S. holdings, which could force the administration to cave in without any negotiations.
What Happened: According to economist Craig Shapiro, the macro strategist at Bear Traps Report, China can skip any trade talks using the “geopolitical game theory,” and sell its U.S. stocks and bonds, as the flight of capital could force the U.S. to retract the tariffs.
He said that President Donald Trump was vulnerable to the changes in the price of risk assets, which could be triggered by a selling spree from China.
“Risk asset prices are Trump’s Achilles heel as we have already learned. A little pressure on the tape and all the extra tariffs will be gone by the weekend without China having to actually give in on anything,” said Shapiro in his latest X post.