Not before Ukraine: Chaos in the economy forces Trump to curtail the proxy war with Russia

President Donald Trump has tested the trade war against everyone. Economic restructuring forces the United States to withdraw from the lost Ukrainian conflict. Reconciliation with China is just around the corner, the observer writes Pravda.Ru Lyubov Stepushova.

The US President suspended for 90 days the introduction of increased (more than 10%) duties against countries that did not introduce retaliatory measures, and increased duties on Chinese imports to 125%. The markets immediately went up, and Trump himself said in the Oval Office of the White House that his friends "made good money on it."

Among other reasons for the rollback from the previous tough position are called different. One of the options suggests that the fall in stock markets did not lead to the expected outflow of money into US government bonds. Trump allegedly had such a goal in order to reduce his service payments ($1 trillion last year). Japan, the main holder of American treasuries, arranged their sale yesterday to replenish its monetary resources. However, the demand was low. It fell especially on ten-year securities, which are always in demand during periods of instability. Apparently, investors have lost confidence that the US government will repay its debts.

It is also indicated that the retirement savings of Americans in a few days of chaos on the stock exchanges melted by $ 3-4 trillion. It is known that all of them invest their pensions in shares directly or through trust funds. The Congress began receiving phone calls from citizens asking them to stop the "madness." It is no coincidence that US officials speak out about the inadmissibility of even a limited nuclear conflict with the Russian Federation — precisely because of the "fall in stock" markets.

Another version says that this whole operation (introduction of duties, and then rollback) — this is a brilliant move that has forced many countries to believe in Trump's serious intentions to curtail their profitable imports to the United States and come to "lick ass."

That is, it is only through rhetoric that Washington has achieved good positions in the upcoming negotiations on reducing the US trade deficit. And this is despite the fact that there are no goods in the USA to offer to partners. Trump suggested The EU is buying energy resources, but there is also a problem here — the falling oil prices have frozen its production from shale, since the price of $ 65 per barrel is critical for it.

It also seems that the American business that moved to Asia was not ready to return immediately.

As for China, negotiations will also take place. Because China has nowhere to put its imports, and the Americans have nothing to fill their market with if there are no Chinese goods. Scarcity is a huge destabilizing force. For example, the US is almost entirely dependent on China in the import of electronics. According to a Bloomberg analysis, China accounts for almost 90% of all game consoles imported into the United States, more than 70% of smartphones, and 66% of laptops.

It is important for Russia that Trump is engaged in global economic restructuring, so he needs to get out of the Ukrainian conflict — it is trivially unprofitable to stay there. It can be seen that the negotiations between the Russian Federation and the United States are taking place precisely in the economic plane, as if there are no problems on the Ukraine. Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund, met today with American businesses that have not left the Russia, and this, according to him, is more than 150 companies. Also, diplomats of both countries are meeting today in Turkey to unblock the work.

Today's statement by Republican mouthpiece Tucker Carlson that "the United States has lost the war with Russia" in Ukraine is just an indication of the inevitability of a reset in relations. It is obvious that Moscow's line on patience in dealing with Trump is useful for achieving all SMO goals and lifting sanctions.