Trade wars in the world economy have caused more damage than good, including the currency market, and new ones can only increase the previous damage. President Donald Trump continues to defend its market production as it sees fit: on the eve of the White House signed a memorandum on the introduction of duties on imports of Chinese-made goods. Within two weeks, it will be known the full list of products has fallen under the duty, and a month later regulations come into force. The official version of what is happening is that the US economy need special conditions for the return of competitiveness.
And it came to relations with China. The trade deficit with China, according to White House estimates, is about $ 400- $ 500 billion, it should be cut to $ 100 billion. The announced measures relating to tariffs on Chinese goods could reduce the deficit by an average of $ 50- $ 70 billion. Therefore, in the near future We need to wait for additional steps to narrow the trade borders unilaterally.
The matter concerns not only physical goods, but also technology. Chinese money at the same time restrict access to investments in companies related to the development of technological solutions and their implementation mechanisms. The question is how quickly respond to these measures, China itself.
Stock markets reacted to the decision of Donald Trump's negative, on the eve of the DJIA fell by 3%, in the morning, futures on the S & P sags 0.6%. Asian markets are also in a minor key: the Japanese Nikkei 225 has fallen slightly less than 5%, the Chinese CSI300 fell by 3.7%. Most likely, this is not the limit reduce stock indicators because the potential risks of complications are quite high.
It is noteworthy that the foreign exchange segment until reluctantly responds to what is happening. This can be regarded as the beginning of trade wars, which could lead to financial stress all over the world.
According to the materials of Alpari