Donald Trump approaching his trade goal

My FX Forum

Staff member
The US is serious about imposing new tariffs on more Chinese imports worth $200 billion. It means that virtually all imports from China to the US could be subject to levies. No wonder, this hawkish rhetoric impels US consumers and China’s suppliers to increase turnover volumes. Companies are rushing to place orders before new trade levies come into force. In this context, China’s trade surplus with the US widened to a record high last month. Such developments came as no surprise to the market. Interestingly, the Russian mass media presents this massive trade surplus as an economic failure of Donald Trump who aims to force Beijing to narrow its trade gap. Apparently, the Russian analysts sincerely believe that such an ambitious goal could be achieved in a month.

Back to statistics, China’s trade surplus reached a whopping $31 billion in August from $28.1 billion in July. Amid a stronger US dollar, China and other buyers had to trim US imports. In contrast, Americans expanded exports from China, benefitting from the overvalued dollar. Besides, they are worried about a new round of retaliatory import tariffs. It seems the US leader is facing “a fiasco” only from the viewpoint of pro-Kremlin media. In fact, both the US and China have to seek new sales markets and suppliers that could be complicated under the same trade terms.

Both the US and China can afford to reboot trade deals with their traditional trade partners. In light of upbeat trade data from China, experts express confidence that the two largest global economies can maintain “steady and healthy” growth despite trade jitters. Both superpowers are struggling for industrial leadership and global influence. Meanwhile, investors are alert to outcome of the new round of trade talks between the US and China.