Trump is playing hard to get as much income as possible from the trade it is doing with Canada, Mexico and China. Now what he is trying to do is that, he has started the trade war and then earn enough money from it and after that remove the income tax altogether. Now the problem is the other countries will also tariff the goods heavily and thus the businesses might suffer.
PC: Pixabay.com
And that's why the effect of it is seen in the Crypto Market today and everything fell like anything. Along with that Indian Market was also following the suit. And in the process Dollar crosses Rs 87 for the first time, because dollar is getting richer. Trump also suggested to not replace dollar with any other currency to the BRICS nation and thus dollar is actually having the upper hand. Slowly he will start the trade war with every other country and thus Anerica will earn enough to do business and in the process remove the incomr tax.
But the problem I see here is that the Businesses will increase the price and thus it is the people who will suffer. People will have more money in hand but at the same time they have to pay much more because of more taxes and thus inflation will be at peak. The sufferer will be more Middle class as they will not have any money to save because of inflation. The rich will continue to get richer and it will a Chaos.
Hopefully if Trump can come up with a middle ground, it will be easier for the world to function. Trade war is again that cold war which will do more harm than good. If I talk about Hive, it has gone down by more than 20% and again it is the best time to buy. Hopefully once the dust settles we will see it again Rising. So even of it rises to 0.40 from here, we will see a 30% increase which is actually a good thing.
