Economic Analyst: The US is badly affected by the economic war with China

The Democrats are preparing for the December 2020 presidential elections by several criticisms for President Donald Trump, starting with blaming him of sabotaging the historical relations with the closest allies, ignoring the challenge of climate change, and failing to forward any progress in North Korea file.

Recently, major Democratic media outlets are talking about a possible recession that could hit the United States and the global economy due to Trump’s trade war against China.

The economist Mazen Arshid refutes any possible recession, he said that the fears of the US-China trade war is leading to losses in some of the US sectors; which cause some fluctuations in the currency markets, stocks and gold. 

However, he stresses that the figures and indicators still have the greatest impact and indicate the strength of the US economy, and the unreality of the predicted recession or the global financial crisis similar to what happened back in 2008.

Arshid adds that Trump’s surprising tweets for companies sometimes cause markets to fluctuate, but stock market indicators which are the most visible mirror of the economy, continue to rise to unprecedented levels, while the unemployment rate falls to an unprecedented level since the end of World War II to reach about 3.8 percent.

“On the other hand, the currency war has become a concern for China, and pushes it to retaliate against the U.S. economy in some of the sectors that China holds, where China is badly affected by the weakening of the Chinese Yuan against the dollar and the high tariffs imposed by Trump administration on its exports,” Arshid added.

Arshid believes that the global economic problem that may lead to something of a slowdown and not a recession, lies in some third world countries whose economies and currencies are deteriorating,

as happened in Argentina where the currency has fallen dramatically, in addition to the Turkish currency, which has recently lost much of its value despite the recent recovery, and India, where its currency is also suffering losses.

He concluded: “The trade war with China is what leads to talks of a slowdown in the economy, yet Trump’s remarks confirm that it is a temporary war until fairer US trade commitments are gained from China, which will lead to greater market satisfaction, and will give the U.S. economy greater immunity”.