The geopolitical situation never brings any good results, and it seems like that’s what’s happening with the USA. US President Trump started a trade war with China a few months ago, and now it is taking a toll on the US economy and him. The reports are stating that Trump is not happy with the board of economic advisors. He tried to resolve this issue by starting another trade talk with Cina when he recently met Chinese president Xi Jinping during G-20 summit. However, that trade talks did not bring any good results. Also recently China decided to slide down its own currency to beat the USA in this ongoing trade war. As a result of that Trump, yesterday said that China is a currency manipulator and added it on the blacklist.
Trump’s key strategies to make China fall is not working anymore, and that’s worrying him about the elections happening in next November. There are many experts who earlier advised to avoid a trade war with China since it could harm him in the long term.
Treasury Secretary Steven Mnuchin also was one of them who wanted Trump to not opt for a trade war with China. However, Trump had proved everyone wrong when he decided to put a hefty amount of taxes on Chinese goods worth of $300 billion. Huawei also got the banned, which increased tension for US-based tech companies operating in China. Now some economists think Trump is going through a dilemma after starting a trade war with China. Now he is anxious about the US economy getting slowed down, which are lowering his chances of winning reelection of 2020. Even though Trump might be in a dilemma, but reports have shown that the US economy is performing better than China. It might be the critical point which Trump can use in the next election’s campaigns.