With the Trump focuses on levying additional tariffs how will it impact India, China other countries ?
Analysis:
With the Trump focuses on levying additional tariffs how will it impact India, China other countries ?
Impact:
Probably will be neutralized based on below reasoning.
Reasoning:
Chinese yuan, Indian rupee and other currency have depreciated and making dollar strong, meaning the increase in tariffs if any will be off-setted by these depreciation. Further, BRICS country trade’s in barter will be as normal neutralising dollar reserves.
Strong dollar itself will pave way for de-dollarisation by Trump and FED.
When central bank selling USD reserves at higher rate gives more money in the hands of seller + domestic currency will become slight stronger.
Furthermore, China + Japan economy by selling bonds to pump more liquidity will trigger fed to cool down dollar.