The People’s Central Bank of China bought 100 tons of gold over the last nine months. The Chinese want to protect their assets as the trade war continues to impact Chinese businesses and consumers. China’s Gross Domestic Product growth may drop below six percent if Trump adds additional tariffs to the $550 billion worth of tariffs on Chinese products. China put tariffs on $185 billion worth of U.S. products.
Mr. Trump plans to add another $250 billion in tariffs on October 15th. China plans to retaliate, but it’s unclear how they plan to do that. China wants to sign a trade deal without agreeing to stop Chinese companies from doing business the way communist capitalism is set up.
According to fxstreet.com, the tariff war cost Americans $259.2 billion so far, and that number will increase if the president follows through on all his tariff threats. Trump plans to put tariffs on European cheese, wine, and other European-made products in October. Some reports claim Trump might add tariffs to European autos and trucks. That move would bring the U.S. economy to a halt, according to MarketWatch.
Americans will pay more $2,000 in additional taxes in 2019 thanks to Trump’s quest to make China cry, uncle. Some economists claim the tariff war will create a recession in the U.S. that rivals the 2008 financial meltdown. U.S. manufacturing numbers haven’t been this bad since 1969, and consumer confidence continues to erode as Trump faces impeachment. If consumers stop spending during the holiday selling season, economists predict the country will face a devastating recession in 2020.
But Trump continues to push the Chinese. Trump told Wilbur Ross to blacklist 28 Chinese tech companies that develop facial recognition apps and the artificial intelligence technology Trump claims the Chinese use to spy on American tech companies. Commerce Secretary Wilbur Ross told the press he blacklisted those companies to stop them from using AI technology to repress Muslims in the Northwest region of China.
Chief U.S. negotiator Bob Lighthizer and Steve Mnuchin plan to resume talks with China’s top trade chief Liu He before Trump imposes more tariffs on October 15th. Mr. Trump told the press he wants a “big deal” that includes his plan to stop China from supporting tech companies like Huawei. But Liu He told the press China only wants to sign a trade deal that doesn’t include intellectual property issues.
Dil Bole Oberoi
