Zooming Out: Trade Wars & Global Economic Policy

U.S. President Donald Trump’s economic relationship with China is a major topic of discussion these days. Economists and media outlets are keeping tabs on the developments to try and stay ahead of the volatility that has been created by trade wars. Trump’s trade war with China could morph into a potential currency war (where a country devalues its currency to get a competitive edge for their exports).

Trump began August by claiming that he would place tariffs on any imports from China that currently are not subject to them. This was met with the People’s Bank of China allowing their currency to depreciate by the most it has in the last 4 years (reaching more than 7 yuan per U.S. dollar). This depreciation (which the U.S. was quick to label currency manipulation) caused investor panic and subsequently caused the markets to back away from highs and bond yields to dive.

Whether this move is an active attempt by China to destabilize global markets and disrupt Trump’s economic platform during his re-election campaign or it is just policymakers in China responding to an economic slowdown, the ripple effects this creates must be prepared for.

If the person or institution managing your finances is not keeping their finger on the pulse and actively ensuring your future is well protected during times of economic volatility, your savings could be at risk. The Ramberran Wealth Group is always available to help ensure your goals are met, no matter the conditions.