Trump's trade offensive threatens America's financial primacy

Financial markets have flashed an ominous message this month about President Trump's ambitious and improvisational bid to reshape global trade: Be careful what you wish for. Volatility in Treasury markets and unexpected weakness in the dollar suggest that what began as a trade conflict could morph into a more dangerous "capital war.” The clash threatens to raise U.S. borrowing costs by undermining Washington's long-standing financial primacy, which for years has drawn trillions of dollars of foreign funds into the country. "This idea that you can break trade, and not break the capital flow side, is a fantasy,” said Steven Blitz,…