The world relationship trade are not better despit the break in trade war, but the result for gold investors could be very profitable.
Just after Treasury Secretary Steven Mnuchin assured markets that the trade war was “on hold,” the Trump government said that it plans to impose 25% tariffs on Chinese exports to the United States, which represents about $50 billion.
The american government also reintroduced tariffs on steel and aluminum imports from Canada, Mexico and the European Union.
Steel prices are already up 45% from a year ago. The yearly change in the price of a new vehicle in the U.S. has been steadily decreasing since last summer, according to Bureau of Labor Statistics data. However with the cost of materials which going to increase dramatically, we will see a price reversal sooner rather than later.
Secondly, the U.S. government could instored new sanctions on imported cars and ban German prestigious vehicles , according to a report in the German business magazine WirtschaftsWoche.
These decisions, if totally enacted, will have a myriad of impacts on the U.S. and global economies. What I can say with full confidence, though, is that prices will increase for producers and consumers alike which is realy good for physical gold but a bad for continued economic growth...