American economy: Has American president Donald Trump 'miscalculated'?

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American economy: Has American president Donald Trump 'miscalculated'?

The United States' government seems to be coasting on high ground after levying duties on Chinese goods and seeking to impose sanctions on Iran after having earlier pulled out of the nuclear deal with the middle-eastern country.

The economy of the country also seems to be doing well: the American stock market and its currency have continued to soar upwards. Even as the going seems to be good for the United States, the country's economic analysts are fearing that the American president Donald Trump may have miscalculated with regard to some of the tougher stands he has been wanting to take against stiffer political and economic rivals, especially Iran and China.

A report by JP Morgan and Chase's analysts on 21st September, cited, "The U.S. economic and equity market resilience despite tariffs will embolden the president on all geopolitical fronts – autos, Nafta and particularly Iran – and thus risk a major miscalculation from sanctions that are tough to calibrate."

These citations were made following the analysis carried out by them regarding the trends of the American economy. The analysts also noted that these could also result in an increase in the price of crude since the demand for Iranian crude would drop following the impact of the American sanctions on the nation post-November.

On Monday, there was a significant increase in the price of the global crude, which rose to a near-four-year. In addition, the analysts also spoke about the levying of duties on import of goods from China would contribute to the slowing of growth of the Chinese economy, thereby hampering the growth of the American stock indices as well.