China will counterattack: Scaramucci predicts currency war, IP theft, sell-off of bonds.

The founder of Skybridge warns that China is preparing to retaliate with severe economic measures as the United States imposes a 125% tariff on Chinese goods, signaling a currency shock, major economic stimulus, and financial warfare. Scaramucci outlines a 5-point forecast on China's next moves amid rising trade tensions. Skybridge Capital founder, Anthony Scaramucci, delivered a strong criticism on Monday on the social media platform X, warning that the current U.S. approach to China risks alienating allies and consolidating Beijing's position. His statements are in response to the financial blog Zerohedge, which claims that China faces three possible reactions to increasing trade pressure from the United States: (1) conceding to all of Donald Trump's demands, (2) devaluing the yuan by 20%–40%, or (3) initiating a massive fiscal stimulus package worth $2 trillion–$3 trillion that would significantly increase China's national debt. Scaramucci dismissed the first option as unreasonable and predicted that the remaining scenarios were more realistic. In his response, Scaramucci made a detailed forecast consisting of five points. "#1 sẽ không bao giờ xảy ra”, ông tuyên bố, bác bỏ ý tưởng rằng Trung Quốc sẽ đầu hàng trước các điều khoản của Trump. Ông tiếp tục: “#2 + #3 is coming," referring to the potential devaluation of the yuan and large economic stimulus as likely responses. Scaramucci added two more predicted outcomes: "#4 họ sẽ bán tháo trái phiếu kho bạc Hoa Kỳ. #5 they will accelerate the IP theft situation." He concluded with a warning against undermining international alliances: Opposing China is fine and bipartisan. However, it makes no sense to simultaneously antagonize global allies geopolitically + economically, pushing them into China's embrace. Scaramucci, who曾任特朗普总统第一任期内白宫通讯主任, criticized Trump's tariff policies, warning that they could lead to recession and disproportionately affect low-income Americans. While acknowledging the need to address the U.S.-China trade deficit, he criticized Trump's unilateral approach and supported more targeted policy measures.

This criticism comes after the White House announced a cumulative tax of 104% on imports from China, in response to China's 34% tax on U.S. goods, which the Trump administration called a "big mistake." On Wednesday, China raised taxes on U.S. goods to 84% after Trump imposed "reciprocal" tax rates, further escalating trade tensions. Later, Trump announced via Truth Social the immediate increase of tariffs on Chinese goods to 125%, citing that Beijing continues to abuse trade and market barriers. He also confirmed a 90-day pause and a reciprocal tariff reduction of 10% for over 75 countries currently in trade discussions with U.S. officials, noting that their lack of retaliation is the reason for this temporary relief. U.S. Treasury Secretary Scott Bessent recently emphasized the imbalanced trade relationship, noting that U.S. exports to China totaled $143.5 billion, while imports from China reached $438.9 billion. Beijing has responded defiantly, stating it will "fight to the end" and labeling the U.S. move as coercive and unreasonable.