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

August 17, 2018 04:05 PM
 
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.

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.”

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Comments

 
Spell Check

A B Wittjen
Holly Springs, MS
8/18/2018 08:10 AM
 

  I agree with you, Rick . There will be some pain felt but it will be only temporary. One must remember that with all good things there comes a little pain. President Trump is doing a splendid job, and he has fustayed true to his word. 635FCD

 
 
william crowe
Darlington, IN
8/18/2018 08:43 AM
 

  JUST TAX ON USA WORKING FORCE WE PAY MORE AT WALMART GOV. GET THE 25% TAX ON CHINA THY CHARGE MORE THAN THE 25%. FARMER'S HIT MORE BEAN'S LOST $2.00 BU.

 
 
Jmcv02
Junction city, KS
8/18/2018 02:41 PM
 

  I really don’t understand how people want to try discussing and insisting tariffs are destroying the US than completely ignore the large trade deficit we already have with China. While trade imbalances within certain industries are ok no country can long term sustain an overall trade imbalance, that is simple economics. To have a trade agreement beneficial to both parties trade imbalance must be zero or close to it. China already has a better deal in our trade agreement and they are constantly trying to steal intellectual property if we continue on this pathway it’s a textbook economics example of a road to ruin for the US. Tariffs will not solve the problem but if it forces China to the table in earnest to forge a beneficial deal for both countries it will be a necessary evil.

 
 

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