Trump noted that whoever says, “It’s Trump’s trade war,” is hardly mistaken. It is a trade war that should have taken place a long time ago by many other presidents, claims United States President. Over the last five or six years, China made 500 billion dollars, ripped out from the United States, Continues Trump, also the theft of Intelligence property. As the leader of the US. Thinks he is the one who did what had to happen a long time ago, and they are on a better side.
But the facts are saying that the American economy suffers from the unresolved trade war. The risks of recession are increasing unless a deal is made soon between Beijing and Washington.
The United States President said many times that various trade issues with China are nearly complete.
The tariffs on hundreds of billion-dollar goods traded between the two countries will remain unless the President Xi Jinping and his Counterpart Trump sign the deal.
Chief economist at financial consultancy Moody’s Analytics, Mark Zandi, already warned about the damaging economic impact of the trade war during his appearance on the MSNBC’s All In With Chris Hayes show on Wednesday night.
A year ago, the U.S. economy was on the right track towards lower unemployment and a robust economy, wage growth was raised, especially at the low end, minimum wage hikes were helpful, said Mark Zandi.
He claims that the global economy took a severe hit by the trade war. In case Trump continues the trade war, recessions risks will rise. Some economists have started to talk about the second Long Depression.
Strategies Trump Utilizes
Chief economist at financial consultancy Moody’s Analytic added that he thinks Trump is connecting the dots between his re-election, trade war, and the economy. President will probably figure out to come with face-saving arrangements with the Chinese side.
But if he will not, the economy is going to suffer, and the recession will most probably start. Zandi says that bad economic policies are forcing a recession.
Economic data showing robust GDP growth, stable inflation, and low unemployment are masking a reality for ordinary Americans who struggle to get by.
The Federal Reserve’s survey found that out of ten Americans, four cannot find $400 to cover an emergency expense. Thus, they must borrow money. Others cannot do that at all.
From those facts, Zandi derives that the many surveys are not filtered down to many working-class Americans, and the suggestions that the economy is in good shape is hardly correct.
The current Hong Kong Issue is a blockade to any arrangement with China; nevertheless, Trump suggested to reporters in the White House that the deal is imminent.
Unites States President says that he has a perfect relationship with Xi Jinping, the Chinese president. He thinks that the deal is one the most important in trade history.
But top economists doubt the possibility of phase one deal to happen soon — the bill which signed the US. President worsened the situation and relationship with China. Let’s see what plans Trump has.