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Dear God what is this garbage I am reading? An increase in tariffs in a consumer driven economy does NOT pressure businesses to pay higher wages! The lack of training and inventory results in layoffs and repressed wage growth. They will offer 2% wages in an economy twice as expensive, produce less.

I think a lot of what Pettis writes is theoretical and probably shouldn’t be taken too literally.

'If' China dumps Treasuries in response to tarriffs (and internal pressures) this may result in a new system with state policies flowing out of a different set of organising principles/incentive structures. How states would actually react is another question.

Tariffs don't work at all during an outbreak of libertaria.