As we all know that past recent months the trade war between the world’s two biggest economies has resulted in big ups and downs in the global, financial and commodity market.
Last week was a big boom for this trade war as the US applied multi-million worth tariff on several goods that were being imported from China. Besides this US administration even charged l tariffs on metal imports from Europe, Canada, and Mexico. Though US President Donald Trump initiated the trade war by charging unexpected tariffs on Chinese products also gave a reason for this,” that the country unfairly transfers American technology and intellectual property that are alarming for American jobs”, he said.
The American products that will be highly affected due to the imposition of the tariff will be vegetables, plastics, aircraft, and chemicals. While the Chinese will be effected on heavier side because of heavy equipment like machinery, mechanical appliance, and electrical goods. Besides all of this hustle bustle, the US business community is not in the favor of the decision to impose trade tariffs, said one of our sources.
One of Washington’s largest lobbying groups being against the decision of imposing tariffs have already warned that this would destruct U.S manufacturers, farmers, and consumers.
“IMF has also warned that this trade war would result in losses on both sides and will leave a severe impact on the economy, besides this, the two countries continued challenging each other and imposing tariffs on each other products”, said one of the govt officials.
Concerns regarding the trade war between the world’s two biggest economies were initiated in March after the US imposed heavy tariffs on imports of steel and aluminum from China. However, the news impacted the global commodity prices in a somewhat mixed way.
As per the instant effect of the news, the Steel prices were weakened at the beginning, but lately, it recovered very strongly, especially in the Chinese market. Besides these ups and downs in steel prices, swings were seen in Aluminium prices as well and the similarities were seen in the market for other base metals as well. Talking about crude oil, this already elevated commodity continued in the positive momentum in the market.
Looking ahead keeping current situations in mind, the tensions between the two countries will be on the positive side as the US plan to restrict Chinese investments into the country. Various reports suggest that the US plans is planning to expand tariff on more Chinese goods in the coming days.