Trump's trade war: economic chaos or end of problems

President Donald Trump's trade war has caused more global economic turmoil than it solved the problems President Bush used as a pretext to wage war on Chinese goods.

In a report for French newspaper Le Monde, writer Stephane Lauer said President Trump's concern about the slowdown in his country's economy is clear.

A few days ago, Trump asked the Federal Reserve to align its monetary policy with the ECB to maintain US competitiveness and counter the German trade surplus.

But how can interest rates on both sides of the Atlantic equal, as the US economy grew by 2.1% in the second trimester, and Germany's by 0.1%? Wonder writer.

The writer also wondered why Trump did not explain the paradox inherent in his positions.

Artificial growth
In fact, the United States faces two economic problems because of Trump. The first is that the current growth of the US economy has been artificially achieved at the expense of a historical budget deficit that is now approaching the threshold of $ 1,000 billion (900 billion euros).

The second problem is the dangers that could arise from Trump's trade war on China.

On August 23, Fed Chairman Jerome Boyle said that "although monetary policy is a powerful tool that supports consumer spending, trade investment and consumer confidence, it cannot provide solid rules for international trade." ".

Contradictions
Trump responded to Jerome Boyle's comment, saying, "It's strange that the Fed chairman speaks without trying to figure out or even ask what I'm doing. My only question is who is our biggest enemy: Jerome Boyle or President Xi?"

Trump, the writer notes, is clinging to his vision and convinced that "trade wars can be won easily."

The writer noted that most observers had a different opinion, citing the current economic situation to criticize Trump, who denied it a few days ago, saying, "I never said that the war will be easy with China."

After explaining that taxes on importing Chinese goods into the US would have no impact on the US consumer portfolio, Trump decided a few days ago to postpone their entry into force "so as not to have any impact on year-end celebrations," the Le Monde report states.

Point of no return
A year ago, some economists questioned the realism of the trade war. Today, we are on the verge of exaggerated enthusiasm and a point of no return, at a time when Trump's boast has provoked more turmoil than problem-solving.

Every time it is difficult to find solutions to this trade dispute, Wall Street reacts violently, and in today's home of economic liberalism he is forced to support much of his agriculture, which is destabilized by the collapse of exports to China.

The US trade deficit has never soared, proving that the imbalance is not due to the fact that the United States buys a lot of products from China and sells them a little, but rather that Americans save less compared to their consumer preferences.

Though Trump boasted of a booming US economy, only a third of Americans believe their financial situation has improved in the past 12 months, according to a survey conducted by New York Times in a survey conducted by Servay Monkey in August.

Chinese President Xi Jinping still has a long way to go, and Donald Trump has only a year left to prove to Americans that he is well aware of the economy and that his leadership remains advantageous despite the difficulties.

A breakthrough is possible
On Monday, Trump said on the sidelines of the Group of Seven summit in France that he believed China was sincere in seeking an agreement to resolve their trade dispute, citing what he called growing economic pressure on Beijing and job losses there, Reuters reported.

Chinese Vice Premier Liu He, who was leading the talks with Washington, said yesterday that China is ready to resolve the trade dispute through "quiet" negotiations and opposes any escalation in trade tensions.