President Trump’s administration has introduced 25% tariffs on more than 800 Chinese products which China has described as “the biggest trade war in economic history” and accused the US of “typical trade bullying.” China responded by immediately putting their own tariffs into effect. The trade war has already begun to raise tension. Trump is threatening another $500 billion, and China has already stated that they will retaliate with an equivalent push. If it were to end there, the impact would cause minimal damage on both economies as a whole, but some industries would certainly suffer. However, Trump responded that his administration would continue to bring waves of tariffs if China continued to retaliate.
The real question is, how will this affect us? Some of the hypothetical downsides are we could experience a U.S recession by next year, it could cause a global recession, and it could lead to a bear market with high unemployment. A couple of hypothetical upsides are that it will change our perspectives on more local and regional markets, and it will help to boost certain small-to-medium businesses and industries. Only time will tell.
Click here to read more on Trump’s trade war in a 7/6/18 article by Jethro Mullen from CNN.