Escalating economic tensions between China and the United States.
China has threatened to impose a 500 percent tariff. Meanwhile, speculation about the export of mineral soils from Russia to the United States has increased, but the main problem lies in the processing of these soils, which is in China’s hands. The proposal to export these mineral elements to the United States could have serious effects on China-Russia relations.
As a seasoned actor, Putin seems to have found an opportunity to present this “trump card” on the eve of Zelensky’s arrival in the United States to meet with Trump. At the same time, Ukraine’s aggressive strategy deep into Russia has caused serious problems in the country’s oil industry. Reduced gasoline supplies and rising prices could lead to increased tensions in international relations.
Meanwhile, Putin’s proposal to build an underground tunnel between Alaska and Russia could bring the two countries closer to land connectivity, and at the same time, the impact of these talks on Iran-US negotiations will also be significant.
China-US Economic Confrontation
The economic and tariff confrontation between China and the US will take on new dimensions, and it seems that the coming months and next year will bring more tensions in the global economy. As the largest economic and technological power, the US has always tried to maintain its influence in the global economy. Trump’s policies, such as imposing tariffs and restricting the export of computer chips to China, have been adopted to prevent the country’s rapid growth.
China has been hoarding gold in order to increase its monetary power, and estimates show that its gold reserves have reached 47 million ounces. In contrast, the US has minimized its gold reserves by using dollar bonds, the stock market, and the digital currency market. Following the announcement of Trump’s new tariffs, the digital currency market has also been severely affected and has experienced an unprecedented fall.
In these circumstances, countries continue to consider gold as a safe asset, and attention to it will increase. It remains to be seen whether the US will adopt anti-gold policies.
On the other hand, emerging and old crises, wars, and military and political confrontations can affect the decline of economic assets. In particular, Iran’s economic situation under sanctions is no exception to this rule, and predictions such as Trump’s $2 a barrel of oil could bring new realities.
However, the country’s import of more than $6.5 billion in gold last year could help the Iranian economy remain resilient in this international turmoil.