After China Trump’s Trade War Now Extends To Mexico & India, Which Is “Incredibly Bullish” For Bitcoin
After China Trump's Trade War Now Extends To Mexico & India, This Will Be “Incredibly Bullish” For Bitcoin
The US-China trade war is showing no signs of slowing down rather keeps on escalating each day. As the war rumbles on, investors are worried and fueling concerns of the global economy weakening.
Per the latest reports, Beijing has released a trade white paper where it blames the US belligerence for the failure of reaching a deal. In response, US president Donald Trump struck out saying US is collecting billions of dollars in tariffs from China.
But who is at a loss here? Actually both. A body of research recently shared that the burden of Washington’s tariffs has fallen mostly on the US with American importers and consumers having to fork out more money to buy Chinese goods. But China hasn’t escaped unscathed as well as it may well damage the Chinese economy significantly in the longer term.
In the latest turn of events, China issued an official warning for Chinese students seeking to study in the US to “raise their risk assessment” after an increase in visa delays and denials who applied to study in the US.
Trump Onto starting A Trade War With Mexico And India Now
Trump has now threatened to improve gradually increasing tariffs on imports from Mexico on June 10 until the country curbs its migrants to the US border.
The president is also removing India’s special market access to the United States that will take effect from June 5.
“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” said Trump.
One critic of this decision warned that ending the designation for India would cost American businesses hundreds of millions of dollars in a year.
“There are no winners from today’s decision,” said Dan Anthony, executive director of the Coalition for GSP, a trade group adding, “American importers will pay more, while some American exporters will continue to face current market access barriers in India and others, including farmers, are very likely to be subject to new retaliatory tariffs.”
Goldman Sachs Predicts An Escalation Of Global Trade wars
Goldman Sachs has revised up its expectation to 60% from previous 40% of an escalation to US trade war with China. There is a higher chance that the US will place a new 10% tariff on the final $300 billion of Chinese imports.
Additionally, the bank revised its assumptions of tariff on all Mexican products suggesting 70% chance Trump will impose duties on the first 5% of Mexican goods and 50% chance that this increase by 10%.
In its note, Goldman Sachs anticipated that the escalation of the trade war and increasing tension between the US and its neighbors to the south will take a toll on its growth. Hence, the US GDP forecast is lowered by around 0.5%, with tariffs expected to come off in about 2020.
This also means Goldman has “sharply raised” its possibilities for interest rate cuts from the Federal Reserve to above 2%.
Time For Bitcoin To Fly
We have already seen how the US-China trade war worked in favor of Bitcoin. A correlation between the Chinese yuan and Bitcoin has been suggested by analysts on various occasions. With the war intensifying and further extending to other countries now, it can really take Bitcoin skywards.
“If China is telling the truth when it says “China does not want a trade war, but it is not afraid of one and it will fight one if necessary,” we are in for a long, painful time of uncertainty. This is incredibly bullish for Bitcoin,”
wrote Morgan Creek’s Anthony Pompliano.
Bitcoin has already started to surge, up about 130% till date in 2019 and now the sky’s the limit for the leading cryptocurrency.