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28.08.2018 06:48 PM
Trump won an important victory in the trade wars over Mexico

Trump won an important victory in the trade wars over Mexico.

On Monday, world media reported: the United States and Mexico reached an agreement to amend the North American Trade Agreement (NAFTA) - in favor of the United States. Thus, Trump won an important victory in trade wars. Now Canada has a very difficult position: either Canada will go to an agreement with the US, making concessions, or Canada will risk getting a significant deterioration in access to the huge US market.

For Trump, victory over Mexico is a major win in the domestic political game. Everyone knows that Trump is hanging a sword of Damocles about the possible links between his campaign headquarters (Manafort) and Russia - with the possible involvement of Trump in the kidnapping of information from the servers of the Democratic Party - and this is a real possibility of impeachment. The investigation has made a number of successes recently, and the possibility of introducing the issue of impeachment to Congress does not have a zero chance.

For the future of Trump, it is critically important that Republicans win the midterm elections to Congress in November this year - and in case of a win there is a real chance for Trump's second term.

In the US economy in recent months, everything is fine - growth results of the second quarter of added 4.1%, unemployment is below 4%, in some industries (mining, construction) have a real boom. Experts believe that Trump's tax cuts played a role here. Stock market: the S & P500 index overcame the highs of the year and reached new historical levels.

With this situation in the US economy, Trump has a good chance of winning his party in November. And for a second term, we have a new economic crisis in the United States and the global economic crisis that could well begin before the presidential elections in 2020 can prevent it.

Jozef Kovach,
Analytical expert of InstaForex
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