Trade War Getting Worse – Burning Issues

Table of Contents

THE NORTH KOREA GAMBLE SEEMS TO HAVE FAILED

“I think President Xi … wants to make a deal, but frankly, he’s not going fast enough,” Trump said.
Total US tariffs applied exclusively to Chinese goods: US$250 billion
Total Chinese tariffs applied exclusively to US goods: US$110 billion

Day 392: August 1, 2019 – Trump says US will impose 10 percent tariffs on another US$300 billion of Chinese goods starting September 1

China no longer top trading partner of US
As a result of their ongoing trade, China is no longer the top trading partner of the United States and has been replaced by America’s neighbours Mexico and Canada

The International Monetary Fund has said the US-China trade war is dragging on global growth. Last month it said the conflict would cut growth by 0.1 percentage points in 2019 and 2020 from its April forecasts, at 3.2% and 3.5% respectively.
International trade growth has stalled and business investment has been paused because of the uncertainty over trade. Factory output has stalled in several countries including the UK, Germany and Italy, with a knock-on impact on growth. Central banks including the US Federal Reserve and European Central Bank are under pressure to cut interest rates as a consequence.