The ongoing tariff war between the United States and China has sparked concerns from top economist Peter Schiff. In a recent post, Schiff warned that China holds significant power over the US and could cause economic damage without implementing tariffs. He suggested that China could sell off US Treasury bonds or shift its goods inward, affecting American consumers and the credit system. Schiff believes such actions could crush the fragile US economy, which is already heavily reliant on debt.
Schiff’s comments highlight the growing fears surrounding the trade war and its potential consequences for the wider economy. With Trump threatening additional tariffs on China, caution is necessary, especially with inflation and borrowing costs already major concerns. The trade war has also had an impact on the digital asset market, with Bitcoin, Ethereum, and XRP facing downside risks following tariff updates. The uncertainty in the market has led to a sharp rise in crypto liquidations, with traders losing money.
China’s advantage in the trade war stems from its internal production and savings, which give it a stronger position compared to the US, which relies heavily on imports and debt. If China decides to offload US bonds or limit the supply of goods, it could pressure the dollar and impact credit availability. Schiff advocates for more tempered action from the US to prevent such moves and maintain stability in the economy. The current situation in the market indicates that things could get worse in the coming days, with experts anticipating further declines in crypto prices.
Overall, the ongoing tariff war between the US and China is causing uncertainty in the market and raising concerns about the wider economy. Peter Schiff’s warnings about China’s power over the US and potential economic damage highlight the need for caution and strategic action. As the digital asset market faces downside risks, it is essential for traders to be prepared for further declines and losses. As tensions between the two countries continue to escalate, it is crucial for investors to stay informed and adapt their strategies to navigate the volatile market conditions.
