Crypto currency investors He’s trying to understand what’s going on in the midst of the biggest trade crisis in history. After the crypton turned into a larger thing, the sensitivity of macroeconomic developments increased. For 3 years, we have seen the results of everything from PMI data to the Central Bank meeting minutes on the graphics. Today we are in the middle of something bigger.
US trade imbalance
US imports were around 2 trillion dollars in the 2005s, but today exceeded $ 4 trillion. As of 1995, trade imbalance increased exponentially and today there is a large trade deficit in response to exports of $ 3 trillion. This is the basis of the tariffs described against all countries. Trump said that this nightmare will end with more fair mutual tax rates that the US economy has been exploited for years due to unfair tax policies.
Canada and Mexican It was excluded from the mutual tariff regime, but a significant part of its exports to the USA are continuing 25 %tariffs in March. The trade balance between China and the United States is at -295.4 billion dollars. This for the European Union is -235.6 billion and $ 171.8 billion for Mexico. Machinery and automobile imports are the leading items that cause trade deficit. Electronic imports in China is the largest pen. Trump vehicles also announce special tariffs as the vehicle imports are one of the biggest items that feed the trade imbalance with Canada.
The trade deficit means that a country imports more value than it exports from its business. Although the USA was very successful in the export of services such as banking, insurance, consultancy and legal consultancy, it has turned out in many items, including electronics, clothing and other products. This has negatively affected the production and employment inside and fed the trade deficit.
With the step he took yesterday Trump He said stop all this. But he finished the story of globalization. Under these circumstances, it is not so easy for things and factories to return to the USA. For countries that want old beautiful days again, Trump says shift your production to the USA.
Andre Sapir, who worked as a professor of economics at Brussels Özgür University, said;
“The US was at the center of globalization, now the center is withdrawing itself.”
Derrick Kam, a Asian economist at Morgan Stanley, says that a new era has been started with a very complex and his bills will be heavy. After the US Second World War, the end of the road has been reached for countries that encouraged exports and limited imports.
In summary, the story of globalization is over if the new order requested by the center, the United States ”is over. If global giants do not carry production to the United States or mutually reset the taxes, a major global trade war awaits the world. In the long run, there is no reason not to return to a hot conflict.
What will happen in crypto currencies?
China is now facing a total of 54 %additional tax. In some items, the ratio climbs to 65-70 with the latest tax. And at the time of the article, Fitch reduced China’s long -term exporter default grade ‘a+to’ a ‘to’.
“We estimate that China’s general government deficit will rise from 6.5 %in 2024 to 8.4 %of GDP in 2025. The note reduction, ChineseIt reflects our expectations that public finances will continue to weaken and that public debt will increase rapidly. We estimate that Chinese GDP will increase by 4.4 %in 2025 by 5.0 %in 2024. ” – Fitch
China said that this note decision was biased at the time of the article. And he announced that moderately loose monetary policy will continue.
Let’s go back to the question of what will happen now. If China, EU and others accelerate relaxation to limit the effect of tariffs, liquidity increases and crypto coins rise. But today, the minutes of ECB told us that interest rates may not be strict. However, when the Chinese article is prepared, it continues to relax, as mentioned above.
It is obvious that mutual retaliation will not work. Therefore, the EU, China and other partners must take the production of the production of the USA or to reset taxes. They are both difficult for each other and quite complex for economies. With yesterday’s statements, we have experienced a major break for the first time since the Second World War for the global economy. We will see more clearly where we go when the reactions of countries to tariffs become clear during a few days or weeks. Crypto Coins Although uncertainty has disappeared for the time being, the tendency to escape from the risk on a global scale is evident, since the days when the horizontal or negative movement potential continues.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
