Trump's confrontation with China: High risks for the economy
Trump's confrontation with China: High risks for the economy
President Donald Trump before another turbulent week of his Trade wars and faces an urgent need to de-escalate the conflict that he triggered with China before he adds deep damage to the US economy.
The geopolitical tensions between the USA and China
The Chinese President Xi Jinping has so far rejected the pressure from the USA to make a call to his American counterpart and to find an "agreement" after the United States has raised 145% tariffs on their rival. This leads to a direct confrontation that has been feared for a long time.
Trump and his strategic challenges
Trump calms the Americans and emphasizes that his "big relationship" will avert a crisis to the Chinese leader, but he does not succeed in initiating conversations in a patient situation, which in turn carries the risk that the stock exchanges collapsed again and real hardness are probably inevitable for the Americans.
Trump's appearance in public perception
Despite the uncertainty, Trump presents himself as someone who enjoys the many conflicts that he has founded himself. At a UFC MMA event in Florida, he enjoyed standing ovation and explained that his reception was "a bit legendary" and showed that "we do a good job".
The economic effects of a trade war
The conflict with China, however, is a serious power struggle with far higher operations. The stuck situation is so serious because the American and the Chinese economy are closely intertwined. The United States is dependent on China when it comes to consumer electronics, rare earths for the production of electric vehicles as well as military applications and robotics. Pharmaceutical products that are used in life -saving medication are also included, as well as basic everyday articles such as clothing and shoes.
The US exports of food such as soybeans and Sorghum to China are crucial for the livelihood of American farmers. But the tariffs imposed on both sides are so high that the trade could effectively stall.
What is the price of a trade war?
Both sides could suffer from a comprehensive trade war, and US consumers could be confronted with bottlenecks and increasing prices. However, some experts believe that China, due to its authoritarian government system, could be willing to add more pain to its population so as not to lose a decisive fight against the United States.
China's retaliation measures
china has Mutual Zölle from 34% on all imports from April 10th from April 10th imposed, including export controls of seven species of rare earths such as Samarium, gadolinium and terbium.