This was always going to happen. Tensions between the US and China have been building for years now, and anyone paying even the slightest attention could see this coming a mile away.
But for it to happen quite like this? That most people won’t agree on. We just had what many thought was a cooling period, and now we’re right back in the fire.
Secretary of Defense Pete Hesgeth just gave a speech in Singapore, calling China a direct threat to peace in the Indo-Pacific.
The speech was sharp. No sugarcoating. No vague diplomatic language.
He made it clear that the US will defend Taiwan. That the US won’t be pushed out of Asia. That the US is watching China’s destabilising actions very closely.
China responded exactly how you’d expect. Condemned the comments. Accused the US of meddling. Reiterated that Taiwan belongs to them and is not up for discussion.
That would have been enough to shake things up. But then the trade war truce collapsed.
Yes, the same truce that saw US tariffs drop to 34 percent and China’s to just 10 percent. That’s gone now.
And while there’s a lot of finger pointing, it’s clear what really caused it.
The US believes China never actually fulfilled their promise to ease export restrictions on rare earth minerals.
So Trump is using this moment, Hesgeth’s speech, and the growing fear around Taiwan to justify new rounds of tariffs.
The Geopolitical Realism Behind It All
It’s important to understand what’s really driving this. Trump is following a clear geopolitical theory called realism.
There’s a few core beliefs behind it:
There’s no real international law. The UN, WHO, ICJ, they don’t matter. Countries act in their own interest.
National interest comes first. Always.
Power is what matters. Military power. And behind that, economic power.
So yes, these tariffs hurt American businesses. But they hurt China more. And that’s the point.
This is about relative power, not just growth.
And for Trump, reversing China’s rise is a win, even if it comes with pain at home.
What Happens Next?
The market is going to swing wildly.
Just like we saw the S&P 500 fall 18 percent, then bounce back 18 percent a few weeks later, we should expect more of the same.
American companies will struggle.
Imports are more expensive.
Exports are harder to compete with.
Inflation will likely tick up.
Interest rates won’t drop anytime soon.
And once again, globalisation takes a punch to the face.
The only thing you can do is understand what’s going on, and make smart decisions.
So I decided to help you out a little…
I created a full breakdown video of the situation.
& included a free gift to help you stay ahead while everyone else panics.
Stay stoic,
Max