The US started an investigation in Chinese Trade Policies in 2017, this imposed tariffs on billion of dollars worth of Chinese products making Beijing retaliate in kind.
After mouths in "war", in December, both countries agreed to halt new trade tariffs for 90 days allowing new talks. In March 1st the deadline for raising tariffs has been delayed.
Even though this War focus on the US and Chine, this trade war hurts the global economy deeply. Why?
With this said, even if the countries came to a conclusion on the trade agreement, risk still remains that other restrictive measures could be implemented later in 2019, in specific trade-sensitive sectors -cars, cars parts .
This would affect Europe, since the motor vehicle represents 1/10 of the total EU merchandise exports to the US and there are significant supply linkages that spread the impact widely across countries and sectors
After mouths in "war", in December, both countries agreed to halt new trade tariffs for 90 days allowing new talks. In March 1st the deadline for raising tariffs has been delayed.
Even though this War focus on the US and Chine, this trade war hurts the global economy deeply. Why?
Trade growth, a key artery in the global economy, has also slowed markedly, to around 4% in 2018 from 5 1⁄4 per cent in 2017, with trade restrictions having adverse effects on confidence and investment plans around the worldsaid the Interim Economic Outlook published last week by the Organization of Economic Cooperation and Development, a research group from rich countries.
With this said, even if the countries came to a conclusion on the trade agreement, risk still remains that other restrictive measures could be implemented later in 2019, in specific trade-sensitive sectors -cars, cars parts .
This would affect Europe, since the motor vehicle represents 1/10 of the total EU merchandise exports to the US and there are significant supply linkages that spread the impact widely across countries and sectors
We’re either going to have a good result or we’re going to have a bad result before too long, but I’m not setting a specific time frame, And it’s not up to me. The president will tell me when the time is up, or the Chinese will
Source:
https://ig.ft.com/us-china-tariffs/
https://www.forbes.com/sites/charleswallace1/2019/03/20/us-china-trade-war-hurting-the-global-economy/
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