{"id":20939,"date":"2025-04-16T06:20:12","date_gmt":"2025-04-16T06:20:12","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20939"},"modified":"2025-04-16T06:20:12","modified_gmt":"2025-04-16T06:20:12","slug":"how-the-us-china-trade-war-is-shaking-things-up","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/sv-eu\/learn\/how-the-us-china-trade-war-is-shaking-things-up\/","title":{"rendered":"How the US-China Trade War is Shaking Things Up"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/sv\/wp-content\/uploads\/sites\/10\/2025\/04\/Ankur-Sharma_1408x768-1024x559.png\" alt=\"\" class=\"wp-image-20940\" srcset=\"https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/Ankur-Sharma_1408x768-1024x559.png 1024w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/Ankur-Sharma_1408x768-300x164.png 300w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/Ankur-Sharma_1408x768-768x419.png 768w, https:\/\/www.vtmarkets.com\/sv-eu\/wp-content\/uploads\/sites\/10\/2025\/04\/Ankur-Sharma_1408x768.png 1408w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>As tensions between the world\u2019s two largest economies escalate, global markets are feeling the heat. From spiking gold prices to slumping oil demand and mixed signals from the US dollar, the US-China trade war is leaving few asset classes untouched.<\/p>\n\n\n\n<p>Whether you&#8217;re a seasoned trader or just watching from the sidelines, understanding how these shifts play out across key markets is essential.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">The Classic Safe Haven Gets Its Spotlight<\/h2>\n\n\n\n<p>Whenever uncertainty looms, gold tends to shine. And with two economic titans trading blows, investors are racing back to the metal.<\/p>\n\n\n\n<p>Since November 2024, gold prices have soared by <strong>28%<\/strong>, reaching an all-time high of <strong>$3,245.28 per ounce<\/strong> in April 2025. The surge has been driven largely by a renewed appetite for safe-haven assets amid heightened geopolitical risk.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold rose to record high as the Trump administration pressed ahead with probes that could broaden a sweeping trade war, boosting demand for havens <a href=\"https:\/\/t.co\/WO13dhrHrm\">https:\/\/t.co\/WO13dhrHrm<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1912312626530447731?ref_src=twsrc%5Etfw\">April 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">A Shift in Investor Behavior<\/h2>\n\n\n\n<p>Chinese gold ETFs alone saw <strong>29.1 metric tons<\/strong> in inflows in the first 11 days of April\u2014surpassing the full Q1 total. It\u2019s clear: risk-off sentiment is triggering a major pivot toward gold.<\/p>\n\n\n\n<p><strong>In short:<\/strong> <\/p>\n\n\n\n<p>\ud83d\udd01 Rising tension \u2192 More demand for safety \u2192 Gold prices climb<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Hit Hard by Global Slowdown Fears<\/h2>\n\n\n\n<p>Unlike gold, oil tends to suffer during conflict\u2014especially when trade wars weigh on global industrial output and transport demand.<\/p>\n\n\n\n<p>According to the <strong>International Energy Agency (IEA)<\/strong>, global oil demand has dropped by <strong>2.4 million barrels per day<\/strong> since January 2025, with around <strong>60%<\/strong> of that decline tied to falling industrial activity in China.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Prices Reflect the Slowdown<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Brent crude<\/strong> has fallen nearly 4% to <strong>$70.36<\/strong><\/li>\n\n\n\n<li><strong>WTI<\/strong> slipped to <strong>$55.18<\/strong>, hitting levels last seen in December 2021<\/li>\n<\/ul>\n\n\n\n<p>With global trade volumes cooling, oil is struggling to find a floor\u2014especially as China drastically cuts its intake of US crude.<\/p>\n\n\n\n<p><strong>In short:<\/strong> <\/p>\n\n\n\n<p>\ud83d\udd01 Trade disruption \u2192 Lower demand \u2192 Oil prices under pressure<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">The Dollar: Resilient, But Vulnerable<\/h2>\n\n\n\n<p>The US dollar often plays the role of a global lifeboat during times of stress\u2014but its behavior this time has been less predictable.<\/p>\n\n\n\n<p>Over the past three months:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>S&amp;P 500<\/strong> dropped <strong>7.96%<\/strong><\/li>\n\n\n\n<li>The <strong>US dollar<\/strong> slipped <strong>8.99%<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This is unusual. Normally, when equities fall, the dollar rises on risk aversion. But here, we\u2019re seeing a rare <em>dual decline<\/em>, reflecting uncertainty not just in stocks, but in faith in the broader US economic trajectory.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US President Donald Trump ordered a probe into potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to push back on industry leader China <a href=\"https:\/\/t.co\/g6UT8X8RCD\">https:\/\/t.co\/g6UT8X8RCD<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1912355299077267938?ref_src=twsrc%5Etfw\">April 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">What Comes Next?<\/h2>\n\n\n\n<p>If the trade war persists and dampens growth further, the <strong>Federal Reserve may be forced to cut interest rates<\/strong>\u2014which could weaken the dollar later in 2025.<\/p>\n\n\n\n<p><strong>In short:<\/strong> <\/p>\n\n\n\n<p>\u2705 The dollar is currently holding firm <\/p>\n\n\n\n<p>\u26a0\ufe0f There might be the risk of softness if rate cuts enter the picture.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">What to Watch in the Months Ahead<\/h2>\n\n\n\n<p>The US-China standoff isn\u2019t just a geopolitical flashpoint\u2014it\u2019s a structural market mover. Here\u2019s what traders and investors should prepare for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Short Term:<\/strong> Continued volatility in gold and oil; elevated demand for safety assets<\/li>\n\n\n\n<li><strong>Medium Term:<\/strong> Potential global growth drag, with oil remaining soft and gold staying bid<\/li>\n\n\n\n<li><strong>Long Term:<\/strong> Structural shifts in supply chains, currency preferences, and capital allocation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">This Is a Global Story, Not a Bilateral One<\/h2>\n\n\n\n<p>While the headlines focus on tariffs and diplomacy, the real impact of the trade war is playing out in commodities, currencies, and sentiment.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cI think that the news cycle, for whatever reason, is focused on tariff policy and the Trump economic policy that I\u2019m part of the team that\u2019s in charge of implementing it is really a three-legged stool,\u201d US Secretary of the Treasury Scott Bessent says. <a href=\"https:\/\/t.co\/4TtOa9NS87\">pic.twitter.com\/4TtOa9NS87<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1912238914255106459?ref_src=twsrc%5Etfw\">April 15, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Gold is no longer just a hedge\u2014it\u2019s a barometer of anxiety. Oil isn\u2019t just an energy source\u2014it\u2019s a measure of industrial health. And the dollar? It\u2019s both a haven and a warning signal.<\/p>\n\n\n\n<p>In times of uncertainty, it\u2019s not just about what moves\u2014it\u2019s about <em>why<\/em>.<\/p>\n\n\n\n<p>Stay informed. Stay adaptable. And above all, keep an eye on the signals beneath the noise.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From spiking gold prices to slumping oil demand and mixed signals from the US dollar, the US-China trade war is leaving few asset classes untouched. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":5,"featured_media":20940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[52],"tags":[76,53],"class_list":["post-20939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","tag-education","tag-learn"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/20939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=20939"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/20939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/20940"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=20939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=20939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=20939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}