OBELA Analysis

The change in the energy matrix plays a fundamental role in the development of the trade war. Photovoltaic cells and solar panels have been subject to various US sanctions as a tool against Chinese expansion in this sector.
The Chinese government, on the other hand, has launched a plan to generate renewable energies on a massive scale, and considers innovation and the search for alternative energy sources as strategic emerging industries.
In Latin America there are large projects such as Cauchari in Jujuy, Argentina, in Chihuahua, Mexico, as well as in Chile and other countries

The US launched a tariff war, from 2018, against the most dynamic export economy: China. The aim was not only to reduce the trade deficit with this economy, but also to weaken its economic growth dynamics and reduce its growing share in the export market. However, the result has not favoured the US and has been adverse to the multilateral international order.
After 23 months of war, 7 rounds of mutual tariff aggression, more than 15 thousand products taxed, 600 billion dollars in tariffs and two periods of truce the two economies entered into a first agreement.
With this Agreement and the new NAFTA the United States advances in the construction of a new international commercial order on the law of the strongest.

Since the beginning of the trade war, American economic growth has started to slow down.  The consequences are: a reduction in the external deficit, due to lower imports of industrial inputs; and an increase in the fiscal deficit due to lower tax revenues.

Much of Trump's speech rested on the labor sector. It is from this that he proclaims that the U.S. economy is in a previously unseen economic boom. However, the unemployment rate is now 12 quarters below the NAIRU, indicating that the slack in the labor market has been fading.

All indications are that the economy is relying on the service sector for its weak growth while the stock markets continue to expand, more because of negative interest rates than real profitability.