Trump Imposed 10% Tariffs On The 300 Billion Trade, Which Was Affected By The Textile Industry.

Recently, International trade is booming again.

Global investors have experienced a moment of panic. On the second day after the Federal Reserve cut its interest rate by 25 basis points, a good American stock jumped, and suddenly a big news plunged into a direct plunge, and plummeted from over 300 points.

Moreover, A50 futures plummeted nearly 3%. Offshore RMB exchange rate plummeted over 500 Point, close to the 6.96 pass, the biggest decline in May 13th, approaching the "7" important psychological barrier. 。

Let's see what's going on.

In the US stock market, Trent has issued a social media issue, saying that it will levy a 10% tariff on the remaining $300 billion worth of Chinese products from September 1st, which does not include a 25% tariff on Chinese products of 250 billion dollars.

Trump issued Twitter, "trade negotiations are still in progress, but the United States will levy 10% small tariff on the remaining 300 billion US dollars from September 1st. This does not include $250 billion of Chinese goods that have been imposed a 25% tariff. We look forward to a positive dialogue with China on a comprehensive trade agreement. I believe the future between China and the United States is very bright. "

In July 30th, the Federal Reserve announced that The target range of the federal funds rate has been cut by 25 basis points to 2% to 2.25%. The level of The Federal Reserve issued a statement after the end of its monetary policy meeting that day. The balance sheet reduction plan will be closed in August 1st. Two months ahead of schedule.

Powell, chairman of the Federal Reserve, said that the interest rate cut in the Fed's interest rate cycle is not the beginning of a long series of interest rate cuts.

This is precisely to give Trump and China once again launched a trade war, to provide arms and ammunition.

Kill one thousand and lose eight hundred. There is no doubt that Trump's trade war with China is also a great loss to the United States while damaging China's economy. When the war between the two countries can stop, it depends on the bottom of the two sides, the ammunition in hand, that is, the economic situation.

The Federal Reserve, as the American economic helm independent of the US presidential authority, has been working with Trump. In 2018, the four increase in interest rates and the tightening of monetary policy were all the measures to curb Trump's trade war and aggravate the negative impact of the US economy.

However, in July 30th, under the great pressure of Trump to change the chairman of the Federal Reserve, The Fed has made a decision to cut interest rates and cut back on the table. This is a powerful plan to inject capital into the US economy and stimulate the economy.

The market is also very strong. In the face of the Fed's first rate cut since December 2008, the US dollar index rose straight to 98.9418.

Although it still did not meet the target of 50 basis points cut by Trump, but it was already a very heavy ammunition, Trump really kept on fighting. He immediately declared war on China and imposed tariffs on the remaining 300 billion value goods between China and the United States.

After a short break between the two sides, a new round of war is officially announced.

Which industry will be affected?

According to the previous tax list issued by the US Department of Commerce, The biggest impact this time is the electronics industry, such as mobile phones and computers. (the following chart, marked red for electronic products), followed by clothing, toys, footwear and so on.

Photo source: US Department of Commerce (smart driving future mapping)

In the next twenty years, China will face the suppression of the whole western world alliance. The United States will be stronger, and Europe and Japan will ease some, but suppression will be the main theme.

The containment of the United States is not based on China's trade concession, nor by China's close proximity to the United States, rather than by changing the economic system according to the requirements of the United States. At this point, the Chinese must be fully prepared.

There are three conditions for China to win the Sino US dispute: 1., within China, we must maintain unity and unity, 2. unite all forces that can unite, break the Western Union's suppression of China, and 3., the further intensification of the internal contradictions of the United States and economic stagnation.

The rest is waiting and carrying. See who can bear, who can carry. Both countries have great structural problems. Ultimately, the victory or defeat of the two countries is within themselves, and whoever can reform and solve their own problems is the winner. The problem of the United States is actually harder to solve than China.

Last sentence,

Confidence in China comes from confidence in the Chinese people. A Chinese is no worse than an American. A Chinese can create an average of 1/3 to half of the average GDP per person in the US. China's total economic output must exceed that of the United States.