Chilean president calls for an end to the trade war between the US and China

 

In a brief message on his Twitter account, the president warned that this confrontation is intensifying and that it not only harms those two nations but also the rest of the world and, especially, countries with open and integrated economies such as Chile.

Piñera ended his tweet with a call in English 'President Trump, President Xi Jimping, end this harmful war' (end this harmful war).

The president made this appeal after learning of a sharp rise in the dollar, which at the beginning of the day climbed to 711 Chilean pesos, with the possibility of continuing to rise.

Economists say this is a direct consequence of the escalation of the trade war, following Trump's announcement to increase tariffs on Chinese products by another 10 percent, and the drop in the price of copper, which is at its lowest level in recent years.

In this confrontation, Chile is directly affected because its two main trading partners are China and the United States.

 

In the case of the Asian giant, a reduction in its Gross Domestic Product with the consequent decrease in imports affects sales of Chilean copper, the country's main export item and which is mainly directed towards that market. 

 

 

On Friday, the dollar was quoted in Chile at 711 eleven pesos, 5.5 pesos more than at the close on Thursday, while on the London Metal Exchange the pound of copper closed at 2,616 dollars per pound, 1,82% less than the previous day and its lowest value since June 17 (2,610).

 

Source: Reuters