We are rapidly approaching the deadline for the latest round of tariffs on $300 billion in Chinese products to hit US importers; less than 36 hours to be exact.
Negotiations between The United States and China have been completely blown to pieces, this week the world’s two largest economies have been battling blow for blow in an all out crusade to prevail and have their way. Earlier this week, China announced plans that it is considering cutting the US supply of rare earth minerals. This is a significant tactical move as China, holding nearly 90% of the world’s rare earth minerals threatens to prevent the production of a vast array of critical products and components requiring these materials.
China also halted all orders of US grain and has no current plan to resume the orders. This move deals a $16 billion blow to US farmers who are already suffering greatly in the wake of the trade war. Yesterday, Chinese media published comments “Don’t say we didn’t warn you”, a phrase used rarely in China’s past, but always just before major conflict.
Meanwhile on US soil, the need to settle the trade war grows more dire every day. Consumers are facing sharp increases for many items needed for regular enjoyment. The markets are deflated and losing ground. Small businesses and importers are also threatened by the looming tariffs that will erode or erase profitability unless immediate alterations can be made to budgets and internal cost structures.
June 1 is just around the corner. Let’s hope to hear some positive news in the coming hours! As of now, things don’t look too good.