What tariffs and a looming trade war mean for Gold
A Gold IRA could protect you from a trade war
It’s been hard to turn on the TV, read a newspaper, or go on social media without hearing about a looming trade war.
During the presidential campaign, President Trump vowed to the American people that he would stop the rest of the world from taking advantage of us on trade. The President specifically called out China, Mexico, and many other trade partners around the world. If you’ve been paying attention, you would have noticed in the past few months that President Trump is making good on his promise.
Is a trade war inevitable?
In March, President Donald Trump signed a presidential memorandum that could impose tariffs on up to $60 billion of imports from China. The United States currently runs a $375 billion trade deficit with China. Just last week, the president ramped it up a notch by levying duties on steel and aluminum imports from Europe, Canada, and Mexico. This was huge news for American manufacturing and especially American steel.
However, progress isn’t always an easy fight. Jean-Claude Juncker, president of the European Commission, said the bloc would move ahead with tariffs that will affect $7.5 billion worth of US exports. Canadian Prime Minister, Justin Trudeau, responded with a list of tariffs on more than 100 U.S. products that amount to $16.6 billion. Mexico has imposed tariffs on approximately $3 billion dollars worth of American exports. China is also threatening retaliation.
The threat of a trade war has led to increased instability in the US markets
What’s happening here is a high stakes game of chicken. China, Mexico, and Europe know that trade with the United States is essential to their economies, but they have to try and fight back. In the meantime, the result is increased market instability. The proposed tariffs could impact American steel, textiles, food and beverage, agriculture, oil, and even American Whiskey!
With so many industries in limbo while this global posturing ensues, the markets are increasingly more unstable, and investors and increasingly anxious.
So what does that mean for Gold?
History shows us that as the markets get more unstable, investors rush to gold for security.
As major US industries prepare for a potential dip in exports and manufacturing, investors are looking to gold and other precious metals for stability. Investors don’t want their retirement accounts to be collateral damage in a global trade war. This current rush to invest in gold has many experts predicting that we could see gold prices soar over the next 16 months. By rolling your retirement into a gold IRA, you can avoid being a casualty of what could be a disastrous trade war, as well as catch the start of a huge gold wave.