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Trade War: Is The U.S. Positioned To Win?

16:05PM Aug 17, 2018

“The U.S. economy is in strong shape,” Narayanan said. “I think it sets the U.S. up to win this thing out.”( Farm Journal )

Trade tensions with China have been ongoing for months. Is China starting to feel more pain than the U.S. as a result of the trade war? Analysts say it’s starting to look that way. 

“I think the U.S. is doing better in the trade war than China is at this point,” Joe Vaclavik of Standard Grain said on this week’s Markets Now. According to Vaclavik, when you consider the stock market which is at record highs, and you note the U.S. dollar is doing better than the Renminbi, it’s easy to say our economy is performing better than theirs. 

“I just think in general, China's feeling the pain of this thing a little bit more,” he said. “That doesn't mean that they're gonna come and strike a deal this week by any means, but I just think for the moment that that Trump believes we're sitting on firmer ground, and I think he's probably right.”

Chris Narayanan of C. R. Narayanan & Co. agrees and says China’s economic pain is not all because of the trade issues. 

“In terms of the overall economy, [in the U.S.] earnings are up, unemployment numbers are down, and GDP continues to rise,” he says. “China's got a lot of problems. I mean, they've over invested they're starting to slow down they're not making the investments that they used to and so and their currency is starting to fall as well.”

He says China is feeling this pain before any kind of economic impact of the trade war has gone into effect for them. 

“The U.S. economy is in strong shape,” Narayanan said. “I think it sets the U.S. up to win this thing out.”