US President donald trump has adopted a soft stance on tariffs and has agreed to negotiate with his trade rival China. He has claimed that negotiations on tariffs have also started between the two countries. The US President, while talking to reporters in the Oval Office, said that he is confident that the world's largest economy can reach an agreement to end a major trade war. In such a situation, the question arises that how trump, who adopted a soft stance on Beijing, is now ready for talks.
When trump started the tariff war, his goal was very clear that China's dominance should be ended and the US economy should be strengthened. However, it seems that his tariff attack has backfired as the US dollar is continuously falling. Investors are scared and capital flow is going down. Investors are also worried about the long-term impact of policy decisions on the economy.
Why did trump bow down?
In such a situation, renowned investor and author Ruchira Sharma has already said that in case of weakening of dollar, foreign investors will be attracted towards India. During a conversation, she told a website that tariff has not become a better weapon for the US President to create pressure. Sharma said that this is probably the wrong way to hurt someone's economy through tariff. She said that now the weakening US dollar has made their strategy more difficult. Imports have already become expensive and US exports cheap due to the fall of dollar. In such a situation, the falling price of dollar has increased the pressure on the US economy. This means that now any further tension on tariff can make the problem more serious.
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