US-China Trade War: Who Could Be The Biggest Losers?

US-China Trade War: A quick recap

You may recall that the US imposed tariffs on $250bn worth of Chinese products in 2018, in an attempt to encourage consumers to buy American, Beijing wasn’t too crazy about that and retaliated in kind.

Let’s take a closer look at that impact…


Chipmakers and electronics manufacturers that depend on China for sales, like NVIDIA Corp. (NVDA), Micron Technology (MU) and Intel Corp. (INTC), are looking pretty vulnerable right now.


It’s no secret, American carmakers sell most of their goods in the Chinese market. In 2018, China claimed that it would raise import tariffs from 15% to a gigantic 40% for all US automobiles. China has a booming auto sector, so this move wouldn’t bother them.


China cut all imports of soybeans, lobster, corn, nuts, and other US farm products. American farmers are now struggling to find a replacement market for their goods and that’s led to a downturn in their productivity, directly affecting the US economy.


The US relies on imports of steel and aluminium to keep many of its core services running, using these metals to construct solar farms and oil pipelines. So, Trump’s proposed additional tax on Chinese aluminium and steel imports has already caused a bit of a shock to the US energy industry.

Trading round-up

We recommend keeping an eye on the following events this week.


● The Bank of Japan will kick a relatively lively week off with their Annualised GDP Growth figures for Q1 (JPY).


● Tuesday is (quite literally) all about watching out for the impact of the RBA’s Interest Rate Decision (AUD).


● We’ll get some important unemployment rate news from New Zealand (NZD).


● The Bank of England is due to produce its latest Inflation Report and Interest Rate Decision (GBP).


● We’ll hear a couple of not-to-be-missed announcements concerning the state of Canada’s unemployment (CAD)



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