Imminent trade war to have global ramifications
Global reports indicate a trade war between the US and China is set to begin imminently, thus plunging global markets into the brace position as tariffs heavily impact the speed of trade.
The US has ensured that a bevy of Chinese products will be hit with 25% tax hikes on Friday June 6, 2018.
The US is aiming to claw back what it perceives as an exploitation of its trade regulations.
In retaliation to the US moves, China has responded by targeting three US sectors: agriculture, automotive and medical.
The US and China are comfortably the world’s largest economies, and the US has been on the offensive since the inauguration of US President Donald Trump, who’s protectionist rhetoric won votes in the US.
China has remained in bullish mood regarding President Trump’s approach, which Chinese leader Xi Jinping threatening to hit back at any tariff hikes on China.
Because China functions as the world’s workshop and the US is so financially powerful, while a trade war would impact the two fundamentally, it will have global ramifications.
Global trade is still in recovery mode after the 2008 recession, meaning a trade war could knock progress back once more.
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