February 27, 2021

Trump insists he does the right thing with China, despite stock market dips

The president of the United States, Donald Trump, insisted on Wednesday that he is doing the right thing in the trade war with China and downplayed the sharp fall that the stock markets are registering.

"Someone had to do it … Someone had to assume a (firm) position," Trump said in the White House gardens before embarking on a trip to Dayton (Ohio) and El Paso (Texas) to pay tribute to the victims of the shootings last weekend.

According to the ruler, with the trade imbalance, China "was taking hundreds of billions of dollars a year from the United States," in addition to "stealing intellectual property."

On the sharp falls that the stock markets have been registering due to the dynamics of the imposition of tariffs and the crossing of commercial reprisals between the two countries, Trump downplayed the situation and said that the exchanges will recover.

"I think the reaction of the markets was already anticipated … But in the end they will rise much higher than they would have ever gone up," Trump said.

So far this month, the Dow Jones and the S&P 500, the two main indicators of Wall Street, have fallen by more than 5%, while the Nasdaq has dropped close to 5.8% in a trend of withdrawal from the Investor market attributed largely to the trade war between the United States and China.

Gold, one of the "refuge investments" in gusts of stock market volatility, rose on Wednesday to highs of the last 6 years, above 2.5%, and silver rose by about 4%.

Trump did not refer to the announcement by the Chinese authorities that, in retaliation for US tariffs. they will stop importing American agricultural products, something that will seriously affect the agricultural sector, but said Chinese trade policies already hurt farmers and that they "understand" it.

After the previous negotiating round, which took place at the end of July in Shanghai, the White House itself had issued a statement stressing that the Chinese side had committed "to increase purchases of US agricultural exports."

Despite this, as both countries continue their trade negotiations, the US president announced at the beginning of the month the imposition of new tariffs of 10% on imports valued at 300,000 million dollars, which will affect tariffs in one way or another. To all Chinese products.

These tariffs will begin to apply on September 1, which puts more pressure on the negotiating teams that will resume their high-level meetings in Washington on those dates.

. (tagsToTranslate) Trump (t) insists (t) correct (t) China (t) falls

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