Showing posts from August, 2019

The Chinese Market Will Never Be the Same

In 2018, President Donald Trump set out on a path to improve the US economy by challenging the US-China trade relationship which he determined was unfairly tilted against the US. Over the past year, tariffs were implemented by both governments as pressure on unresolved trade negotiations for a new deal built. As of the latest round of tariffs, the US will add an additional 10 percent tariff on all Chinese imports after there was no resolution following the previous round (tariff of 25 percent on $200 billion of Chinese exports to the United States and tariffs of up to 25 percent on $60 billion of US exports to the China).

As expected, the aggressive behavior from both sides have created rifts in the various markets included in US-China trade. As of June, Chinese imports of US goods fell 31.4 percent to just $9.4 billion while US imports of Chinese goods fell 7.8 percent to $39.3 billion. The steep decline in US exports to China has caused US companies that previously did business with…