Since the 1980s, Trump has supported tariffs to reduce the U.S. trade deficit and encourage domestic production, and said the country was «ripped off» by its trading partners; The imposition of tariffs has become an important part of his presidential campaign. [4] A context of the Council of Foreign Relations stated that while many economists and trade experts did not believe that trade deficits were hurting the economy, others felt that persistent trade deficits were often a problem and that there was a substantial debate about the size of the foreign government trade deficit and the policies to be adopted to reduce it. [5] Almost all economists who responded to the Associated Press and Reuters polls said that Trump`s tariffs would do more harm than good to the U.S. economy,[7] and some economists have argued for alternative ways for the United States to deal with its trade deficit with China. [5] [8] [9] [10] [11] Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said tariffs were «purely defensive measures» to reduce the trade deficit. [56] It says that the cumulative billions of dollars that Americans transfer abroad as a result of annual deficits are then used by these countries to buy U.S. assets, unlike the investment of that money in the United States. these billions of dollars are in the hands of foreigners who can then use them to buy America. [57] Investor uncertainty due to the trade war has caused turmoil in the stock market. [231] [232] [233] Economists at the financial firm Morgan Stanley expressed concern about the end of the trade war, but warned in June 2019 that this could lead to a recession. [321] In a late-night cable in Washington, Beijing returns in almost every aspect of the proposed trade pact. The yuan also rose to its strongest level in four months to improve optimism about the potential of trade with the removal of certain tariffs. The onshore rate rose by 1% on Friday, at 6.9570 to the dollar, the strongest since August 2 on the basis of intraday Economist Sheng Hong, director of the think tank Unirule Institute of Economics, which no longer exists, said it would be good for China to yield to the U.S.

demand for fair trade, saying that the «Chinese model» of state capitalism was incompatible with its policy of market reform and harm to the Chinese economy. [258] In the midst of the closure of Unirule, after Hong was accused of threatening state security, Hong Beijing`s inability to contain internal criticism was compared to «driving in a car with a dirty windshield». [258] In December 2019, the South China Morning Post reported that, as a result of the Chinese government`s trade war and crackdown on shadow banks, Chinese productive investment grew to its lowest level since registration began. [228] In an article in April 2018 in Forbes, Harry G.