Banyan Hill Publishing’s Matt Badiali says that the ongoing United States and China trade war started by Donald Trump is going to be a real drag on the price of metals for quite awhile. He started the trade war in February by putting tariffs on solar panels. He then later put big tariffs on steel imports which has hurt many industries ranging for construction companies to soda manufacturers. China has been playing defensively against that time. Every time the United States puts in place tariffs so does the Chinese government on American goods. So far China has put in place $130 billion worth of tariffs on American products including liquefied natural gas, pork, and soybeans.
Meanwhile, the Trump Administration has put in place $250 worth of tariffs on Chinese exports which will cause the price of products to broadly increase in the United States. This trade war will cut deep on both sides but especially so in China. Tariffs decrease demand for products as their prices increase. People in both countries will see a broad range of products go up in price by as much as 25 percent if not more. This is weakening the Chinese Economy and the Shanghai Composite Index reflects this fact as it is now down to multiyear lows. Matt Badiali says that investors are favoring America in this trade war. American stock markets are at all-time highs and the American dollar has been increasing in value against the Chinese yuan since this trade war started.
In particular, commodities are less expensive in the U.S. but are increasing in price in China. This has resulted in the demand for precious metals to drop, he says. Matt Badiali has been writing about investing in precious metals and other natural resources for over a decade. He has an educational background in the earth sciences and then became an expert at evaluating companies and their operations. He works at Banyan Hill Publishing as their chief resource investment professional and manages three separate financial newsletters. He gets his information straight from the source as Matt Badiali often travels around the world to meet CEOs, evaluate mines, and otherwise does his due diligence.