In recent days, we have been paying close attention to the new measures taken by the man who believes himself to be all-powerful in his offensive against the world. What has sadly come to be known as the “trade war between the United States and China” is growing increasingly tense due to the tariffs imposed by the current president of the United States, Mr. Trump.
This global threat creates significant economic uncertainty. Potential investors are facing difficulties planning their future projects, as there is no clear position regarding the measures implemented by Trump. These measures should not be ignored by businesses and large corporations, as they have a significant economic impact through the application of tariffs on imports from various countries into the U.S. This situation undermines investor confidence and is on the verge of triggering a severe economic crisis.
Not having a clear economic policy from the strengthened empire that controls the dollar adds a layer of unpredictability to an already complex environment for investors. This leads to additional costs that, rather than lowering inflation, increase it and reduce the value of the dollar. Moreover, there is talk of the BRICS countries moving to counter this tariff threat. The confrontation with China has opened the door for Russia to strengthen alliances between the two economic powers. China, in response, has already implemented measures that directly target the U.S. economy.
The Chinese government has already imposed trade restrictions, such as limiting rare earth exports, which impacts the production of permanent magnets used in electric motors, wind turbines, defense systems, smartphones, satellites, and many other applications. On another front of this economic war is the production of container ships. While Donald Trump claims he will begin large-scale production within the country, it will take many years before the necessary infrastructure, technology, and personnel are in place. In contrast, China already possesses this capacity and has been developing it for years. According to sources, China has become consolidated in this sector and in 2024 received 80% of the global orders, thereby reducing production costs.
The global economic situation is about to take a new direction. It is essential to closely monitor each move by the president of the United States, whose increasingly controversial measures have shown that neither friends nor foes are safe from his erratic decisions.
Thank you for your attention. See you next time.
Image and translation created with ChatGPT.
