International Trade and Global Business

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Trade War Update: No Sign of White Flags

September 21, 2018 2:13 PM

Where are trade wars headed now?  As we enter the final quarter of the year, the impacts of the tit-for-tat tariffs on some U.S. goods entering China and a growing number and dollar value of goods entering the U.S. have not yet caused major harm to either economy.
 
President Trump insists that China is hurting, and points to the recent 30 percent drop in its stock markets.  But few individual citizens in China own stock, so market losses are unlikely to cause enough pain to undermine the authority of the Communist party or drive the government to seek a deal. U.S. farmers have noticed a drop in sales to China, but letters from their mostly Republican Congressional representatives, asking Trump to remove the tariffs, have gone unanswered.
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