BlackRock CEO: US and China are headed toward a ‘full-fledged’ trade war

Donald Trump with Chinese President Xi Jinping. Thomas Peter-Pool / Getty Images

BlackRock CEO Larry Fink on Thursday said the United States and China were on a path toward an all-out trade war, in which tariffs are placed on all goods shipped between the two countries.

“We’re going to have a full-fledged trade war” if policy continued on its current path, Fink said at The New York Times’ DealBook conference.

Fink added that issues related to Treasurys were his “biggest worry in the world today.”

“We may have a supply problem and it’s not the Federal Reserve that is raising interest rates … they’re raising on the short end, but that has not bearing on the long end. We’re still seeing long end pretty muted, but the biggest threat today is the $US670 billion deficit this year.”

He added: “What I worry about is to sell out debt, especially at the long end will mean higher interest rates because people will demand a higher premium, and that’s one of the fundamental issues that can mute and can harm our equity markets in the long run.”

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