Why China, not the U.S., has won the trade war
(Kitco News) - America is losing the trade war with China, and the Phase One deal was just political posturing ahead of the November presidential election and won’t really have any real economic impact, this according to Gianni Kovacevic, executive chairman of CopperBank.
“The Chinese won the trade tariff war,” Kovacevic told Kitco News on the sidelines of the Vancouver Resource Investment Conference. “The Chinese can wait it out. They think in long, long terms, long visions.”
He added that the cost of tariffs mainly fell on the average American consumer.
“You go to the United States, you go to any shop, most of the stuff is made elsewhere: Bangladesh, China, Vietnam, what have you, and those things cost more money. And there’s the Walmart Index where you look at 72 or 75 different objects that you buy at Walmart, if you look at they cost in 2017, 2018, and 2019, they’re up way higher. That’s real inflation, and for Joe lunchbox in any town in America, they’re paying more for the things they buy,” he said.
On copper prices, Kovacevic said that buyers of the metal rarely care about price rallies; what matters more is whether or not there is a shortage.
“Anyone that buys commodities has no interest in high prices,” he said. “Think about it, you make copper cable. When did you celebrate copper reaching an all-time high? Never.”