Wall Street favors Trump trade strategy

The aggressive attitude against China by the president of the United States, Donald Trump on trade strategies seems to be like a high stakes poker hand but the money managers of Wall Street who make bets for a living are of the viewpoint that they can still play in these circumstances and it would be worth it. Fears have risen that Donald Trump could bring forward a trade dispute which has roiled Wall Street since the 1st of March 2018 that is when Trump had announced the plans for imposing tariffs on imported aluminum and steel risking the revenge from some of the major partners of trade like Europe, China, and neighboring Canada. It has been very similar to the ride of a roller coaster with the markets slumping after Donald Trump set to impose up to about sixty billion dollars in tariffs on imports from the nation of China on previous Friday.

China, on the other hand, declared its plans to retaliate with duties of up to about three billion dollars on imports from the United States even as it urged the nation to pull back from the brink. On Monday, a rebound was spurred that the nation of China is willing to negotiate in spite of the nervousness in the sector of technology that drove the markets back down on Tuesday. The investors are still very much concerned regarding a trade war between the two of the largest economies of the whole world. But some of the other big players are quite optimistic about their prospects for making money even as they try and dissect the strategy of Donald Trump on trade.

The former celebrity businessman mentioned on Twitter on the 2nd of March that these types of trade wars are good and at the same time are easy to win as well. This statement shocked the economists who put forward the examples of some of the previous trade wars in the past that have been destructive in nature to the economies that were involved. Steve Chiavarone who is a portfolio manager at Federated Investors stated that other administrations have gone to trading partners like China and asked for a deal which was a bit fairer in nature just for the purpose of putting a star on their forehead. He also mentioned that he suspects the bucking of norms by Donald Trump is a part of his tactics for negotiating.

January 16, 2022 - 17:36
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