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

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Apple Boston

2020-08-26 10:33:00 Wednesday ET

Business leaders inspire teams to reach heights of both innovation and profitability with great corporate purpose.

Through purposeful leadership, senior managers inspire teams to reach heights of both innovation and profitability with great brand identity and customer lo

+See More

Edge strategies help business leaders improve core products and services in a more cost-effective and less risky way.

John Fourier

2020-09-24 10:26:00 Thursday ET

Edge strategies help business leaders improve core products and services in a more cost-effective and less risky way.

Edge strategies help business leaders improve core products and services in a more cost-effective and less risky way. Alan Lewis and Dan McKone (2016)

+See More

Global financial markets suffer as President Trump promises *fire and fury* in response North Korean nuclear ambitions.

Daisy Harvey

2017-08-07 09:39:00 Monday ET

Global financial markets suffer as President Trump promises *fire and fury* in response North Korean nuclear ambitions.

Global financial markets suffer as President Trump promises *fire and fury* in response to the recent report that North Korea has successfully miniaturized

+See More

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

Monica McNeil

2018-05-11 09:37:00 Friday ET

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2

+See More

AYA free finbuzz podcast channel on YouTube March 2019

Andy Yeh Alpha

2019-03-31 11:40:00 Sunday ET

AYA free finbuzz podcast channel on YouTube March 2019

AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac

+See More

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.

Jacob Miramar

2019-05-13 12:38:00 Monday ET

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iran.

Brent crude oil prices spike to $70-$75 per barrel after the Trump administration stops waiving economic sanctions on Iranian oil exports. U.S. State Secret

+See More