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Trump quickly moves to war with China. Trade War
On Monday, June 18, US President Trump demanded from the trade officials to prepare a new list of goods from China to pay a duty of 10% - a list of goods worth a huge amount, $200 billion.
Earlier on Friday, Trump approved and actually introduced tariffs on goods from China for $50 billion.
Since China immediately responded with a statement that it will impose retaliatory measures on goods from the United States by the same amount, Trump said that in case of China's retaliatory duties, the United States will impose another $200 billion worth of tariffs to pay for a list of goods from China.
At the same time, Trump said that he had "excellent relations with Chinese leader XI Jinping" - but he, Trump, will not allow other countries "to use trade with the US for their interests".
I do not think that in the case of the entry of all these duties (and it seems more real in the first week of July) - Trump will be able to maintain good relations with the head of China. I believe that all these actions of Trump appear, from China's point of view at least, as hostile actions - and, probably, as an insult.
Trump wants a trade war - most likely, he will get it. I believe that the United States will lose more than it would win. Trump's actions are completely unjustified from a purely economic point of view: Unemployment in the US is only 3.8% - a very low level. If China stops supplying large amounts of goods to the United States, who will produce them in the US?
At the same time, the blow to international trade - a blow from the US especially - is inevitably undermining the status of the dollar as the currency of world trade.
We follow the development of the plot.
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