The tariff war can be divided into several categories: China is in the strongest rival state, Russia is in war state with US and trading diminished, borderline countries like Mexico and Canada are bounded by fentanyl and illegal immigrants, EU is the traditional partner of US, then chip-4, then the rest of the world.
Originally China had an idea to unite the whole world to fight against US in tariff war, but of course impossible. They are all exporting countries and are aiming at US. They do not have any inter-trading that can replace US. They still have to face US one by one.
EU described the deal with US is already the best among the most tough situation.
The EU pledged: (1) Energy procurement: “plans to purchase” 750 billion euros of US liquefied natural gas, oil, and nuclear energy products over the next three years; (2) Investment in the US: EU companies “have expressed interest” in investing at least 600 billion US dollars in various sectors in the US in the future.
Anyway, Donald Trump not just asked for tariff, but also investment to bloom up the domestic economy and improve unemployment. Therefore it lowered the risk of recession and inflation, don’t focus too much on this. So when the stock market retreats, it is another golden pit. That is the best point of buying in a bull market.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.