Events on trade war development are in the focus!
Dear traders,
On Friday, the US and China exchanged with reciprocal trade duties worth $ 34 billion for imported goods. At the same time, Beijing accused Washington of initiating the largest trade war in history after a sharp escalation of the conflict between the two largest economies in the world.
Neither side signaled any readiness to retreat, which increased fears that the two largest economies of the world are approaching a full-scale trade war that could shake the world economy.
President Trump said that in two weeks the second package of duties on Chinese goods will come into force at $ 16 billion. He also suggested that in the amount of duties on Chinese goods could exceed $ 500 billion. This value is approximately equal to the total amount of imports of Chinese goods in the US over the past year.
The Chinese state press criticized Trump’s trade policy and compared his administration to a gang of bullies.
Washington and Beijing approached the trade war after several rounds of negotiations, as a result of which it failed to eliminate the US claims to China’s industrial policy and the lack of access to the Chinese market. The negative balance of trade between the US and China is $ 375 billion, according to the latest data.
On Wednesday, Trump will start his trip to Europe with a visit to the summit of the NATO-countries leaders, which will be held on Wednesday and Thursday in Brussels. It is predicted that Trump will call on other countries to spend more on defense again. According to information from diplomatic circles, although this is not in the official program of the NATO summit, but most likely European leaders will express their fears about the situation in international trade.
Then on Friday, Trump will visit the UK, where he will meet with Prime Minister Teresa May and Queen Elizabeth II.
Trump vows to fulfill his promises and protect US industry from what he calls unfair competition with China, the EU and other countries. He is ready for this, even if the duties introduced will trigger retaliatory actions against the US economy.
Market players fear that the threat of imposing duties on the part of the United States and the barrage of other countries may be the reason for the end of the period of global economic growth. (Investing.com)
Have a nice day and a trading week, Ladies and Gentlemen!
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