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President Donald Trump declares that he is ready to introduce tariffs on all Chinese imports. In total, imports of more than $ 500 billion will be affected by the new penalties. This brings Bloomberg News Friday afternoon.
– I do not do that for politics. I'm doing this to do good for our country, "Trump said in an interview on the CNBC television channel.
He further believes that China has long used the United States.
– They take advantage of us and I do not like it, says Trump.
According to Bloomberg, the value of $ 500 billion is the total value of all Chinese imports to the United States in 2017.
Trumps play marks a Significant escalation of the ongoing trade war between the two major powers.Until now, Trump has imposed a penalty for Chinese imports of about $ 34 billion.
China does not not introduced a similar duty on US imports, but limited to about $ 34 billion.According to CNBC, it is not possible for China to match the new Trump customs clearance of a value of 500 billion dollars.
– I do not want that They are saved. I want them to behave, Trump said in the interview with CNBC.
Not surprised
Chief Economist at DNB Markets, Kjersti Haugland, is not surprised at the statement to Trump.
– He has already announced that he is ready to put customs on just as long as the Chinese continue to come up with countermeasures. He is trying to bring China to the negotiating table, but China has so far shown no sign of Trump's rhetoric, "said Haugland.
In 2017, the value of US goods imported $ 129.9 billion, so China is unable to respond with the same currency if the United States chooses to intensify the trade war.
– They may try to hit American companies in China and deny US investment, but it's hard to say how China will respond. That says Haugland
If customs are introduced, this will make it even more expensive for consumers and manufacturers to import goods from China.
– More expensive goods will spur inflation and disrupt economic growth The US central bank needs to raise interest rates faster than it would otherwise, says Haugland
senior portfolio manager and manager of global allocations and interest rates, Olav Chen at Storebrand, thinks Trump introduces the mega.
He loves China's response
– China does not import goods of this value from the United States, so it must think of other counter-reactions, such as currency , he says
. Twitter to express his frustration with the commercial situation. On Friday, he chased China, the EU and others for what he thinks are market manipulations from his US trading partners
– China, the EU and the US others have manipulated their currencies and their interest rates become stronger and stronger for each day – and eliminate the competitive advantage. As usual, it's not the same competitive conditions, Trump wrote.
Twitter's message sent the dollar down. The Chinese currency, Friday, has reached its lowest value against the dollar since last July.
By weakening its currency, Chinese products become cheaper. This means that, in theory, China can so weaken its currency that the goods cost the same as before the customs.
– I do not think we're still here, but you can see an indication that the government has a finger in the game already looking at the weakness of the currency recently, Chen said.
Another weapon that China can use is according to Chen to empty the bonds and debts of the US government.
– This will lead to higher interest rates in the United States, which will affect the economy. There is enough last resort, he says. (Terms)
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