US President Donald Trump has previously threatened economic action against Beijing, pledging a 45% tariff to force up the cost of Chinese imports to the US. However, China has warned it will hit back harder if Trump follows through with his threats. An editorial in the regime-run Global Times newspaper last year warned: “The new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences.”
Now a US expert fears action from Trump is imminent. Businessman Jim Rogers told Daily Star Online: “When things start going wrong, then Donald Trump will start a trade war. “He thinks that will solve the problem, it won’t. It will make things worse, no-one has ever won a trade war. “I expect things to go wrong by next year, sometime in the next several months something will happen and he will take action.” Asked what effect this conflict would have on the global economy, he replied: “It’s going to be the worst financial situation in your lifetime.”
ON THE BRINK: US businessman Jim Rogers believes a trade war is imminent
China has already told the US President his “random” threats to “totally destroy” North Korea risk dragging the world into a devastating conflict – and America will “inevitably suffer losses.” North Korea’s communist ally said Trump’s actions were “hostile” and “create trouble” for China. The nuclear-armed superpower warned: “Further escalations of tensions will only lead to war.” Trump has previously said he wants to enforce tariffs because “the only power that we have with China is massive trade.”
He told CBS News: “I would tax China on products coming in. I would do a tariff, yes – and they do it to us.” He has also proposed a 35% tariff on cars made in Mexico, in response to the suggestion Ford would move manufacturing south of the border. Daily Star Online today also revealed the US is heading for a dollar disaster 10 years after the financial crash.
Euro Pacific Capital CEO Peter Schiff said: “I think we’re heading to a dollar crisis and a sovereign debt crisis. “It’s going to be different than what happened in 2008 which was a loss of confidence in the private sector, mortgage backed securities and the banks.” However, this time the US crisis may not have a drastic effect on the rest of the world – depending on how countries react. Britain and other major economies could benefit greatly if they simply let the dollar fail, Schiff claims.
Source & Pic : DailyStar.co.uk