U.S.-China Trade War Heats Up: Trump’s Next Move and China’s Financial Counterattack

An excerpt from the Regulus Q2 2025 Financial Astrology Forecast on April 13, 2025.
Transcript edited for print.

Kevin O’Leary Drops a Bombshell on CNN

Now, what’s driving the larger macro narrative is the fact that this U.S.-China trade war is really going to accelerate and intensify. In fact, it was really interesting—you had Shark Tank’s Kevin O’Leary on CNN, talking to Democratic panelists, and they were stunned when he called for a 400% tariff on China, praising Trump’s trade war against the Chinese Communist Party, the CCP. And by the way, he’s Canadian.

He said—here’s some of the quotes:

  • “They cheat, they steal. They steal IP. I can’t litigate in their courts.”
  • “You may not like Trump. You may not like his style or his rhetoric.”
  • “Finally, you have an administration that puts up and says enough. 400% tariffs tomorrow morning…”
  • “I want President Xi on a plane to Washington…”
  • “America is the number one economy on earth with all the cards.”

China’s Central Bank Is Going All-In

So this thing is really heating up here. And we’ve seen the People’s Bank of China doing everything in its power to bolster Beijing in its trade war. The central bank—the People’s Bank of China—is closely aligned with the CCP, which is deploying every available tool to support Beijing’s position in this escalating and intensifying trade war.

This includes aggressive market interventions, such as purchasing record volumes of domestic ETFs—basically bailing out companies and markets, stabilizing investor sentiment. The Bank of Japan is intervening in currency markets to prevent the yuan from collapsing. They’re actively buying the renminbi, which is China’s internal currency, through intermediary banks while offloading U.S. dollars by selling U.S. Treasury holdings.

China’s Financial Counteroffensive

To sustain these operations, China is liquidating massive portions of its U.S. Treasury holdings through domestic sales via Euroclear accounts in Belgium. So you can see, China is doing everything. And we haven’t seen levels like this since before the 2015 yuan devaluation.

What’s happening is that China is devaluing its yuan—the currency it uses outside of China. They’re selling U.S. Treasuries. When they sell Treasuries in dollars, they get that money back to buy up their renminbi to prevent their currency from collapsing.

Western Media’s Narrative vs. Economic Reality

So I want you to understand this, because everyone thinks China is winning, they’ve got all the cards, Trump is wrong, he’s collapsing, he’s going to be impeached—you hear this from CNN, you hear this from BBC. But this is the truth. They are definitely disservicing the public and putting people into a false sense of urgency and crisis thinking.

Now the crisis is here, because the economy is slowing. But what I want you to understand is that the larger macro moves playing out here are not reflective of what’s happening in the news. Beijing is implementing emergency measures to prevent an even deeper currency crisis and broader liquidation spiral. They are doing everything in their power.

China’s Limited Options: Devalue, Stimulate, or Surrender

There’s only a few options for them:

  1. Concede defeat to whatever terms Trump demands
  2. Devalue their yuan by 30 to 40%
  3. Unleash the biggest fiscal stimulus in history—$3 trillion—which would push their debt off the charts.

That’s where China is now.

The U.S. Dollar: A Double-Edged Sword

And when we look at China versus the U.S.—who has the advantage—the biggest issue here is a structural one. The massive U.S. trade deficit is related to the fact that the U.S. is the world’s reserve currency, and the rest of the world owns lots of U.S. dollar assets outside the U.S.

Being the world’s reserve currency is a double-edged sword. On the positive side, it creates global demand for U.S. dollars. Everybody needs dollars—it’s the predominant currency used for trade settlement, for global contracts, for central bank reserves. Their money would be monopoly money without U.S. dollars to be swapped for trade settlement and contracts. Any type of exchange between countries outside their internal economy has to be done in U.S. dollars. And their central banks have to hold U.S. dollars as part of the Basel III Accords.

The Manufacturing Dilemma in America

That’s the positive side. However, the same demand that strengthens the U.S. dollar makes domestic manufacturing less competitive. So American manufacturers decide to have everything done in China. And over time, this has hollowed out our industrial manufacturing base.

Now, even with the political will to reshore—to bring back American manufacturing—let’s just say like 90% of the manufacturing for Apple computers is done in China. To get that reshored, the U.S. fundamentally lacks the human capital. Meaning, we do not have a manufacturing population. We don’t have a population with the manufacturing skillsets. That’s been missing for 20, 25-plus years now.

We don’t have a population of young people who are driven to go into manufacturing. And we don’t have the supply chain depth to scale quickly. Now we do know robots—AGI-powered, 250+ IQ robots—will be able to fill that in, right?

But the thing is, we have this crisis and we need a solution implemented quickly. And we don’t have the population pool. We don’t even have motivated zillennials—the current zillennials are not interested at all in going into manufacturing. So it could easily take five to ten years to rebuild the expertise needed for a monumental endeavor to be globally competitive again.

However, I do not think it will take five to ten years because of the AGI (artificial general intelligence) revolution and the ASI (artificial superintelligence) revolution that will occur in 2032. So yes, it will take time, but it’s not going to be five to ten years to tool up young Americans or middle-aged Americans into manufacturing mode like we saw in the 1950s. That’s not going to happen. Most of those people will not be going into manufacturing.

U.S. vs. China: Who has the Advantage?

So when we look at who has the advantage—in theory, at least—the debtor country, the U.S., has the economic advantage in a trade war. By definition, this is because the U.S. imports more than we export. So tariffs will hurt the exporting country, China, more.

But the big difference is that China has acquired decades’ worth of U.S. assets, which they can sell to hurt the U.S. financially. China owns more than $750 billion worth of Treasury bonds. And they’ve been flexing their financial muscles by dumping those Treasuries, buying renminbi, and propping up their own currency.

That’s pushing up the 10-year Treasuries higher, which requires the U.S. government to go more into debt faster to service those bonds. The dividend on the bonds is going up, and it requires U.S. government tax dollars to maintain that. So the U.S. is going into debt faster as a result, creating massive stress.

Just so you understand—China is striking back in a different way because they own $750 billion in Treasuries. And the U.S. has to finance over $6.5 trillion of debt coming due in the next few months, while the 10-year Treasury yield continues to go up—because of what China is doing. And China is well aware of what’s happening.

Trump’s Next Move: Delist Non-Compliant Chinese Companies

So Trump is going to strike back further. Kevin O’Leary said that Trump is about to drop an economic bombshell on China that will make his tariffs look like child’s play. And basically, it comes down to the fact that Chinese companies listed on U.S. exchanges like Nasdaq and NYSE are not following the same rules that American companies must follow.

They’re basically cheating—unfair competition. They’re not operating within the law or compliance. So now what Trump is planning to do—the next big thing—is that U.S. regulators are about to enforce rules equally by removing Chinese companies from U.S. exchanges if they haven’t complied with financial disclosure laws.

Allowing them to stay creates an unfair, uneven, and potentially risky market environment. So that’s what Trump’s going to roll out very soon. And again, this is going to create all this choppy volatility and craziness in the markets. He’s gonna force China to play by the rules.

Here’s a quote from Kevin O’Leary:

“There are currently billions in market capitalization listed on the NASDAQ and NYSE from Chinese companies that I’m forced to compete against. Unlike me, they don’t bear the same burdens: I’m required to pay for compliance, maintain full transparency, and strictly follow U.S. laws—they are not. Yet, they raise capital through the same investment banks I use. This is an uneven playing field. These companies were given a clear deadline two years ago during the Biden administration under a modified law to come into compliance. They failed to do so. Now it’s time to act. Once Atkins is sworn in, the delisting process for these non-compliant Chinese firms should begin immediately. Why should American companies be held to higher standards while facing competition from those who operate in the shadows? It’s time to level the field—let’s squeeze them out.”

Expect Turbulence: Forecasting the Financial Fallout

So that’s what’s going to happen next. That’s part of the reason we’re going to see a lot of choppiness again. The black box is reflecting this exactly. This is why I use it so much in my forecast modeling. It’s basically measuring the movement of the planets against the chart and putting it on a graph. It’s saying, hey—we’re going to see more craziness, choppiness, volatility, uncertainty in the markets as this trade war, currency war, technology war, and cold war escalates with China.

To watch the full forecast webinar and gain in-depth astrological insights on global markets, key economic events, and investment strategies, register for the Regulus Quarterly Financial Astrology Forecasts today.


William Stickevers is a strategic astrological advisor with nearly four decades of experience, known for his data-driven forecasts and 85%+ accuracy rate. He combines advanced astrology, economic analysis, and historical trends to provide high-level insights for investors, business owners, and independent thinkers worldwide.

William’s predictions—such as Bitcoin’s rise in 2010, Russia’s 2022 invasion of Ukraine, and the 2024 U.S. Electoral College outcome—have made him a trusted voice for those seeking clarity in an uncertain world.

He is the founder of the Global Transformation Astrology (GTA) Membership and Regulus Quarterly Financial Astrology Forecasts and has advised clients across 28 countries. William has also appeared on Coast to Coast AM, The Unexplained, and other media outlets, and spoken internationally from Tokyo to Munich.

Learn more about his programs, consultations, and reports at www.williamstickevers.com.

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