Trade War

US-China Trade War: What will The Market Experience Now?

As Election Day is approaching, President Donald Trump’s chaotic behavior is getting edge day by day. The US-China trade war is getting a huge impact on the global economy which can be a threat as well as an opportunity for various other developing countries. Here is everything one needs to know about the US-China Trade War and its impact summarized by FinanceShed

The U.S. president and the committee at white house are pretty sure that there are negligible chances of faltering economic growth even when the market is highly volatile. The market itself is facing a huge downfall and it even washed out when Trump gave a statement that gave details about his intentions for the trade deal.

Trade War

Source: atlas-network.com

Trump said, “We’re talking to China. We’re not ready to make a deal, but we’ll see what happens.” He blamed other leaders of the US to not participate in this condition and not doing anything for the economy. 

Apparently, Trump is not ready for the Trade-Deal with China, not any sooner. He also said that solving the ongoing protest in Hong Kong would be very good for the trade deal. This means he is still not ready to go for any kind of negotiations with China. 

Also Read: What Does U.S.-China Trade War Imply For Asian Markets?

The Market Condition

Trade War

Source: prod-upp-image-read.ft.com

Financial markets around the world fell sharply after US President Donald Trump gave a threatening warning to impose a new tariff on $300bn of Chinese goods in a rapid escalation on this situation of the trade war. The global market is falling sharply because of these tariffs increase and because of this Wall Street fall flat as investors try to find a way out of this decision to bring a trade truce with China to an abrupt end.

On Friday, Dow Jones lost all the profits earned on that day and its average closed down to 26485 having lost more than 250 points that single day which ultimately became the lowest and the worst week this year in US stock exchange. 

Not only the US economic growth has slowed down because of the dispute but also the factory output is falling across Europe which also affects Germany and Italy. They are also putting pressure on the US’s central bank to cut the interest rates and because of this US Federal Reserve has reduced rates for the first time in a decade.

The trade conflict has taken a new level of threat and tension which, it seems, to be a difficult task to reverse. This trade war has reached a whole new level of seriousness from where it can cause a severe economic slowdown or even a recession.

The previous tariffs were not affecting the consumers but the new tariffs that are to be levied from September 1 will affect everything including consumer goods such as apparel to smartphones to footwear. 

Not only the US has increased the import duties on these specific goods, but China has also retaliated against this and increased tariffs on goods imported from the US. This war is undoubtedly causing huge damage to the larger companies of the countries.

Trade War

Source: reutersmedia.net

Trump is definitely not in any kind of pressure to have the China deal done and that is apparent from his blunt ban on Huawei. China in return is not allowing any kind of import of agricultural items from the US. This tension is surely going to harm American farmers and consumers. 

Negotiations cannot be possible if the decisions are taken at gunpoint or keeping the economy on stake. 

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