The trade war between China and the U.S. is heating up again. President Trump believed China would fold under heavy tariffs, but that didn’t happen. Instead, China fought back hard, showing no signs of backing down. Tariffs have been raised on both sides, hitting goods from semiconductors to chemicals. While Trump claims talks are happening, China publicly denies them, saying the U.S. must first show real respect. The rift is deepening, and the global economy is feeling the pressure.
Trade War Pushes China Toward Gold and Away from U.S. Treasury
China may be rethinking its reserves strategy. Blackrock’s Jay Jacobs says that China and other central banks are starting to shift from U.S. Treasurys to gold and even Bitcoin. The freezing of Russia’s assets after the Ukraine invasion scared many countries, including China. They now want assets outside U.S. control. Gold is the top pick, but Bitcoin is gaining ground too. Blackrock sees geopolitical fragmentation as a powerful force shaping markets for years to come.
Trump, Tariffs, and the Economy: Who’s Winning the Trade War?
Trump’s heavy tariffs were supposed to break China’s economy. But that plan backfired. China’s economy is hurting, but it hasn’t collapsed. Exports are still driving much of its growth. Meanwhile, U.S. businesses and consumers are feeling the pinch from higher costs. Trump insists deals are close, but no real progress has been made. Both sides are digging in, preparing for a long and painful standoff. Investors are nervous, and Wall Street is watching closely.
Blackrock: Gold and Bitcoin Gain as Trade War Unfolds
In a recent interview with CNBC, BlackRock’s Jay Jacobs said that investors are increasingly moving into gold and Bitcoin as safe-haven assets. He explained that Bitcoin’s growing decoupling from U.S. equities is making it more attractive, especially during times of global tension like the current trade war. Jacobs noted that BlackRock sees geopolitical fragmentation as a “mega force” that will define global markets for decades. This shift is fueling demand for assets that are less tied to U.S. policy.
“We’ve seen significant inflows into gold ETFs and into Bitcoin,” Jacobs said. “People are searching for assets that behave differently.” He added that central banks, particularly China, are starting to diversify away from U.S. Treasurys, turning to alternatives like gold and crypto. Jacobs also pointed to the freezing of Russian central bank assets as a wake-up call for many countries. If this trend continues, he believes gold and Bitcoin could play an even bigger role in the future global economy.
Treasury, Tariffs, and Trump’s Gamble With the Economy
Trump’s tariffs are now hitting everything from tech gadgets to trucks. New tariffs range from 7.5% to 125%, putting more strain on U.S. importers and consumers. China’s response has been measured but firm. They’re offering small tariff cuts on things like medical gear but aren’t stepping back. Treasury Secretary Scott Bessent hints at new deals with other countries, but China’s stand-off looms largest. The U.S. economy is feeling the effects, and the longer the trade war drags on, the riskier it gets for both sides.
