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

Apple releases the new iOS 13 smartphone features.

John Fourier

2019-07-01 12:35:00 Monday ET

Apple releases the new iOS 13 smartphone features.

Apple releases the new iOS 13 smartphone features. These features include Dark Mode, Audio Share, Memoji, better privacy protection, smart photo collection,

+See More

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide.

Monica McNeil

2023-07-21 10:30:00 Friday ET

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide.

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide. Joseph Stiglitz and Andrew Charlton (200

+See More

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

Apple Boston

2019-01-08 17:46:00 Tuesday ET

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

President Trump forces the Federal Reserve to normalize the current interest rate hike to signal its own monetary policy independence from the White House.

+See More

President Trump delivers his second state-of-the-union address to U.S. Congress.

Olivia London

2019-02-06 10:36:49 Wednesday ET

President Trump delivers his second state-of-the-union address to U.S. Congress.

President Trump delivers his second state-of-the-union address to U.S. Congress. Several key themes emerge from this presidential address. First, President

+See More

European economic integration seems to have gone backwards primarily due to the recent Brexit movement.

Daisy Harvey

2019-10-19 16:35:00 Saturday ET

European economic integration seems to have gone backwards primarily due to the recent Brexit movement.

European economic integration seems to have gone backwards primarily due to the recent Brexit movement. Brexit, key European sovereign debt, and French and

+See More

Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concerns.

Chanel Holden

2018-11-09 11:35:00 Friday ET

Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concerns.

The Internet inventor Tim Berners-Lee suggests that several tech titans might need to be split up in response to some recent data breach and privacy concern

+See More