The trade war with China has continued to be threatened by the Trump administration as they look to facilitate discussion about “free and fair reciprocal trade.” It is common knowledge that foreign companies trying to enter Chinese markets must enter into unfavorable joint ventures which compromise proprietary information. The administration has already stated that it will be imposing $50 billion worth of tarrifs on chinese goods, and has threatened $100 billion more. Treasury Secretary Steven Mnuchin has publically said he does not expect a trade war with China to happen, and that the United States is open to discussion with China moving forward. Frequently, when Trump makes claims about increasing tariffs, the stock market tumbles 2+ percentage points. Remarks made supporting increased discussion between the US and China have helped stabilize the stock markets. We should expect to see more stable markets over the coming weeks until a final decision can be made about the next round of tariffs.
https://www.wsj.com/articles/trump-officials-soften-tone-on-trade-dispute-with-china-1523207017
1 comment:
With how things have been going I think the public should still be aware that a trade war is still a large possibility. Especially with the threat of 100 billion dollar threat by Trump. If this were come to pass China would be hard pressed not to retaliate. Hopefully, this does not happen because the implications of a trade war are not good for either country.
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