Carefully watch the U.S. president to save your money in Forex

The right hand doesn’t know what’s doing the left one. The US president Donald Trump threatens to impose tariffs on almost 100% of China’s import, and the Senate unanimously adopts a bill that eliminates tariffs on about 1660 products, including toasters and chemical stuff. Most of them are produced in China. National Association of Manufacturers estimated that the U.S. companies pay $1 million a day more due to the present tariffs. Has the USA really understood that only trite truths are born in arguments?

The U.S. negotiations with the EU became another evidence that the U.S. president is getting more compassionate during the recent times. It may be real Donald Trump’s personality, he just wanted to attract attention to his figure at the beginning of his national leadership, and so, pretended to be an evil guy. Admit, nobody remembers about Obama today. The financial markets try to catch every other word by the White House’s leader and follow boxers’ golden rule, “don’t stare away, you’ll miss the most interesting”.

Anyway, to paint Donald Trump an innocent lamb is even more unreasonable than to ignore his eccentric words and deeds. The reasons for the Trump-EU trade truce are likely to be in the upcoming parliamentary elections in the USA, as well as in the US president’s wish to get the former opponents to his side. To fight with another enemy. The EU will import more U.S. soybeans, and so, the USA will make up for China’s retaliatory import tariffs and improve the life of the U.S. farmers. The EU should understand that when you bow to someone, you let the others kick you in the back.

The discontent of large U.S. firms inside the country can result in serious troubles for the Republican Party in November. So, Donald Trump will find it extremely hard to pass his initiatives through the Congress. That is why he sounds rather peaceful in relation to the EU, and the Senate initiated eliminating the U.S. import tariffs. Generous moves. Washington had better be more careful. As history proves, generous moves can punch someone in the ear by chance.

It is remarkable that the topic of the US trade wars, having been the headline of most global tabloids over the recent few months, may, in fact, turn out to be a trifle. Global leading central banks, the IMF and other authoritative establishments say trade wars to be the main danger for the global economy. Large investors used to be doing the same, but they have changed their attitude recently. According to the recent Reuters poll, there won’t be any global trade war. There are rather many talks, but the present global trade system is unlikely to change. What do US-China mutual tariffs, worth $50 billion, mean, when compared to their economies that are over $30 trillion?

They say more and more often in the market that Trump, in fact, is a free-trader, a supporter of free international trade. The U.S. president doesn’t share the opinion that “if you do nothing, you won’t have to redo anything”. The more interesting it’s going to be for the financial markets!

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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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