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What's next in the trade war between China and the U.S.?
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Loading...American President Donald Trump has made it clear that he has no intention of making compromises with China on the $200 billion in tariffs set to go into effect this week. Judging by the previous tariff impositions, trade experts believe that the current tariff imposition will take place in parts. The previous tariffs on $50 billion in imports took place in two parts: one $34 billion part, and another of $16 billion.
China for its part will place tariffs on $60 billion of US imports, and will likely seek to retaliate in other ways as well. The escalation will likely continue until there are visible signs of a slowdown in the U.S. economy. But when this will happen most analysts don't know. They admit that the tariffs are something new that they have no experience with. Up until now we haven't seen any serious damage to the US economy. The only notable exceptions are producers of agricultural and animal products, whose main market is China.
According to Morgan Stanley, the negative effect of the tariffs on the Chinese economy will be limited.
Tomorrow we will look to PMI data in the U.S., which may hint at whether US enterprises are seeing fewer orders before the imposition of tariffs. On Wednesday we will see the trade balance of the U.S.: we will look for reductions in exports, in particular.
Image: Official Twitter of President of the United States
Sources: CNBC, Bloomberg Finance L.P.
Original post: Trade expert outlines what's next in the U.S.-China tariff battle
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