Financial Times: Trade War Escalation Rattles Global Stocks

The United States announced additional tariffs worth $200 billion on Chinese imports, and retaliation is anticipated from China. US tariffs would cover nearly half of Chinese imports. Global stock markets, especially chipmaker, industrial and mining sectors, are in decline. “The escalating trade war is adding to downward pressure on China’s economy from a slowdown in infrastructure investment and reduced subsidies for the property market,” reports Financial Times, adding China’s currency is also down against the dollar. “The escalating trade war is adding to downward pressure on China’s economy from a slowdown in infrastructure investment and reduced subsidies for the property market…. Market participants are worried that tariffs or a negotiated settlement will erode China’s current account surplus, which has already narrowed in recent years.” The tariffs may target select products but pain will spread throughout the global economy. – YaleGlobal