Trump Keen To Demonstrate His Dealmaking Prowess To Voters

"I think the Chinese probably are a little bit better protected to weather the storm because they have such small financial markets as a share of GDP, only about 60 per cent. Whereas the US stock markets are equivalent to about 140 per cent of American GDP," Dr Kennedy said.

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FROM B1 will suffer more damage.

Given its capital controls, the chances of capital flight from China are relatively low. It could also make use of a huge fiscal stimulus to staunch economic problems. With its massive US$36 trillion debt, the US is more constrained.

Surely the danger is plain to Mr Trump, the real estate billionaire keen to demonstrate his dealmaking prowess to millions of voters.

HOW TRADE WAR COULD END Dr Steve Miran, the chief of the White House Council of Economic Advisers, laid out how Washington would like to see the trade war end.

"The best outcome is one in which America continues to create global peace and prosperity and remains the reserve (currency) provider, and other countries not only participate in reaping the benefits, but they also participate in bearing the costs," he said in an April 7 speech before the conservative Hudson Institute.