The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute.

Laura Hermes

2018-06-09 16:40:00 Sat ET

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute. The tariffs effectively boost costs and prices for American consumers and enterprises. The delivery company FedEx views U.S. tariffs on Chinese goods as *counterproductive to U.S. economic interests*. China counteracts these penalties by imposing 25% retaliatory tariffs on $50 billion U.S. farm imports such as beef, cotton, rice, soy, and wheat. This recent Sino-U.S. trade conflict may herald a new era of much greater trade protectionism.

The U.S. major stock indices S&P 500, Dow, and NASDAQ experience discernible losses in response to the core complex trifecta of Sino-U.S. trade tension, Federal Reserve second interest rate hike, and energy cost momentum. In addition to this negative U.S. stock market return performance, the greenback exhibits much more volatile near-term gyrations in the foreign exchange market. In a putative trade war, there are winners and losers; whereas, everyone suffers in a major trade conflict. Full-scale and all-out tit-for-tat would become a suboptimal approach to resolving the current bilateral trade imbalance.

It is important for each side to refrain from undertaking any unilateral actions to complicate the status quo. Both sides need to consider a better balance between carrots and sticks in addressing the Sino-U.S. trade dilemma.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown.

Olivia London

2019-01-05 11:39:00 Saturday ET

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown.

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d

+See More

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

Fiona Sydney

2018-03-07 07:34:00 Wednesday ET

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

President Trump tweets his key decision to oust State Secretary Rex Tillerson after several months of intense disagreement over diplomatic affairs. Trump so

+See More

Global economic uncertainty now lurks in a thick layer of mystery.

Jonah Whanau

2019-03-01 13:36:00 Friday ET

Global economic uncertainty now lurks in a thick layer of mystery.

Global economic uncertainty now lurks in a thick layer of mystery. This uncertainty arises from Sino-U.S. trade tension, Brexit fallout, monetary policy nor

+See More

Top 4 U.S. richest people are self-made billionaires: Gates, Buffet, Bloomberg, and Zuckerberg.

Dan Rochefort

2017-08-01 09:40:00 Tuesday ET

Top 4 U.S. richest people are self-made billionaires: Gates, Buffet, Bloomberg, and Zuckerberg.

In American states, all of the Top 4 richest people are self-made billionaires: Bill Gates in Washington, Warren Buffett in Nebraska, Michael Bloomberg in N

+See More

Federal Reserve delivers a second interest rate hike to 1.75%-2% and then expects more rate increases in late-2018.

Charlene Vos

2018-06-08 13:35:00 Friday ET

Federal Reserve delivers a second interest rate hike to 1.75%-2% and then expects more rate increases in late-2018.

The Federal Reserve delivers a second interest rate hike to 1.75%-2% and then expects subsequent rate increases in September and December 2018 to dampen inf

+See More

Ben Horowitz shares many hard truths, setbacks, failures, obstacles, difficulties, and disappointments through his rare unique entrepreneurial journey at LoudCloud.

Laura Hermes

2025-05-29 08:25:28 Thursday ET

Ben Horowitz shares many hard truths, setbacks, failures, obstacles, difficulties, and disappointments through his rare unique entrepreneurial journey at LoudCloud.

Serial venture capitalist Ben Horowitz describes many hard truths, lessons, and insights from his entrepreneurial journey of running LoudCloud from a Silico

+See More