Late last week, President Trump announced the next round of tariffs targeting China; the amount, $50 billion. In response, China announced a proposal for matching tariffs equally in response. Global markets responded, swiftly declining in total caps and value.
Early this week, President Trump announced the potential of additional tariffs targeting China, this time to the tune of $200 billion! Trump ordered his administration to prepare plans for this prospective roll out if Beijing refuses to abandon the last round of retaliatory tariffs.
So far, China and The United States have issued or are considering issuing tariffs affecting $307BN in goods.
Mar 23: US $3BN
Apr 2: CN $3BN
Apr 17: CN $1BN
Jun 15: US $50BN (planned)
Jun 16: CN $50BN (Proposed)
Jun 18: US $200BN (Drafting)
Industry experts across the world are hoping that somehow, the trade war will calm and settle. The European Union, NAFTA and others have voiced significant concerns for the potential devastation to the global economy if tariffs continue to escalate. This week, India fired back with new tariffs on over $200 million in US exports. But the issue is really much broader than trade with one country. In todays’ global society, manufacturers whether in China, India or another place abroad are typically not solely held by local citizens. Of the tariffs imposed on China, 60% of the enterprises are foreign owned, and some 40% of that 60% is American in this particular case.
Each week, further developments are occurring. Only time can tell if and when the escalation will end and ultimately, what effects on both the US and global economies there will be. Stay tuned.