Many countries around the world have started reacting to the United States’ decision to raise tariffs. While some nations appear divided and have yielded to Washington’s pressure, one country remains a major challenge: China.
Despite President Trump’s efforts to hit China the hardest, it increasingly seems like he may have met his match. China is not backing down. The trade war with Beijing might prove to be too big a bite for the United States to chew.
American financial tools appear insufficient. As a result, alternative strategies are being considered—economic, military, and logistical. One possible tactic is to block China from using key maritime trade routes. For now, this remains one of the cards in Trump’s hand.
However, blocking Chinese exports is a slow process, and the U.S. may not have the luxury of time. Meanwhile, China’s retaliatory tariffs and financial measures could trigger inflation within the United States.
If the pressure escalates, particularly through attempts to shut off China’s access to major sea lanes, the conflict could take a dangerous turn toward military escalation. And domestically, Trump faces strong opposition from the Democrats, weakening his position even further.
One thing is clear: financial turbulence is ahead. It might be time to start looking for alternatives to the U.S. dollar—and even the euro.
(Stay tuned for more on the euro in our upcoming pieces.)
Trade with the best technical and fundamental analysis
Premium registration gives broad access to all publications related to understanding the world. What and why is happening, as well as what is about to happen. You will know the truth, which will give you great advantages over all others.
Premium Plus Membership
In addition to the standard Premium subscription, in Premium Plus you will have access to our world news, which is unique. The news connects different events and analyzes why and what will happen. Only here will you find out the truth about the news.
