* Luxury brands exposed by Chinese manufacturers:
Chinese manufacturers are sharing information about top luxury brands, including the factories where their products are made, their production costs and the exorbitant prices they charge Western consumers, and China also claims that more American products are made in China.
The US luxury market is worth more than $101 billion, with top brands such as Louis Vuitton, Chanel, Hermes, Gucci and Ralph Lauren. These brands generate significant profits and contribute to the reputation of their countries
* Reasons why luxury brands are valuable:
There are two main reasons for the high value of luxury brands: their historical importance and exclusivity. For example, Hermes, founded in 1837, originally made saddles for horsemen and over time evolved to make train seats and travel bags
* Challenge from Chinese manufacturers:
Chinese manufacturers are challenging the exclusivity of luxury brands, claiming that a significant portion of their products are manufactured in Chinese factories, with final completion in France, Italy or the US.
They also suggest charging thousands of dollars extra for logos and packaging* Counterfeit market:
Chinese manufacturers are offering copies of luxury brands to sell directly to Americans at low prices, cutting out the middleman 70% of products used for online shopping on Amazon come from China
Impacts of the Trade War: The international value of the dollar is declining due to the trade war, and the use of the dollar in international trade is decreasing. China and Russia already conduct 90% of their trade in local currencies.
Donald Trump is trying to return America to the industrial age, which is devoid of a modern economy. He believes that bringing back jobs in factories and manufacturing will make America great again
* Tariffs and their effects:
Tariffs are taxes ultimately borne by the American people, as they raise the price of imported goods. Trump argues that tariffs will help develop local industries and create jobs in the United States
* US economy:
The US economy is now primarily service-based, with manufacturing accounting for only 9% of GDP. Americans prefer to work in sectors such as education, IT, automation and artificial intelligence
* From Steel Belt to Rust Belt:
Since the 1980s, factories in America's Steel Belt have closed, leading to the region being known as the "Rust Belt"
* Trump's strategy:
Trump has used a strategy of creating chaos and then exploiting the situation for profit, as he did with his real estate deals
* Tariff losses:
Trump's tariffs have hurt the US economy will, because the US does not have enough unemployed workers to replace factories, and the cost of labor will make American-made products more expensive, and all of this will take a huge hit to the US dollar
*China's position:
China is better positioned for a trade war because its dependence on the US market is decreasing, and it controls 90% of the supply of rare earth minerals needed for key industries
*Rare earth minerals:
The US needs Chinese rare earth minerals for its advanced industries, including F35 jets, submarines, missiles, smartphones and the AI industry
*China's response:
China has stopped supplying rare earth minerals to the US, a major step in the trade war
*Future world order:
Trade wars and Russia-Ukraine war are shaping a new economic world order with less dependence on the US The world order established after World War II is difficult to replicate.
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