Several investors and economic experts do not believe that the trade war between the United States and China will be ending any time soon — in fact, some warn it could become the new normal in American trade.
Reporting from Axios demonstrated that several experts think that the trade war could escalate into a years- or even decades-long problem. There’s no end in sight presently for how the trade dispute, initiated by President Donald Trump, could end in the short-term, and some fear the difficulties in negotiating a deal will spill into the next administration or beyond.
The assessments were published on the news site the day after Trump sent a series of tweets warning of new tariffs to be imposed against Beijing if a September 1 deadline wasn’t met. The new tariffs would place a 10 percent tax on $300 billion worth of goods coming from China, on top of the 25 percent tax on $250 billion of goods that has already been implemented.
But even before Trump’s tweets on Thursday, there were signs of things going south when it came to the outlook between the two countries. S&P Global revised predictions for U.S. GDP growth over the next three years, for instance, saying “the risk of trade protectionism between the U.S. and China will persist for some time.”
Trump's trade wars are taking a big bite out of the economy (and your wallets). Let's be clear: His tariffs function just like taxes on ordinary Americans. pic.twitter.com/pQgX0KSNi1
— Robert Reich (@RBReich) July 29, 2019
On Thursday afternoon, the tweets sent out by Trump announcing the new tariffs against China sent markets tumbling by hundreds of points, per previous reporting from HillReporter.com.
Markets elsewhere have also seen significant losses. Hang Seng in Hong Kong fell by nearly 650 points, Nikkei 225 in Japan was down by over 450 points, and as of press time, the French CAC 40 was down by about 2.5 percent, per reporting from CNN Business (observed at 9:15 a.m. Eastern Time).
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Chris Walker is a freelance writer based out of Madison, Wisconsin. A millennial with more than a decade of journalism experience, Chris aims to provide readers with the latest and most accurate news of national importance. Chris likes to spend his free time doing activities in his community with his family.