U.S.-China Trade War 2025: Trump’s Achilles’ Heel and Wall Street’s Volatility
📌 U.S.-China Trade Tensions and Trump’s Achilles’ Heel ― A Stock Market Driven Power Struggle --- Part I. The Trade War Rekindled ― A New Wave of Tension In October 2025, global financial markets once again found themselves engulfed in turmoil. Just months earlier, investors had been clinging to the belief that the boom in AI and new industries might offset concerns about an economic slowdown. But by mid-October, rising tensions between the U.S. and China abruptly shattered that fragile optimism, throwing markets back into a state of volatility and fear. On October 15, Wall Street closed mixed. At first glance, index movements seemed modest, but a closer look at intraday swings told a different story. Investors had to simultaneously digest three escalating risks: the re-ignition of the U.S.-China trade war, mounting fears of a prolonged government shutdown in Washington, and the shockwaves from China’s rare earth export controls. Together, these overlapping pressures fuele...