What is it about?
Has the digital economy really become the modern economy? As the trade tensions between the US and China threaten to escalate, global repercussions are not only being felt in respect of reverberating lower interest rates in other jurisdictions such as New Zealand, Thailand, India and the Philippines, but also a re positioning of major trading allies – as the former NAFTA (and now USMCA) partners, Canada and Mexico, have displaced China from its trade relations rank with the United States.
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Why is it important?
The tariff hikes appear to be taking their intended effects – probably discouraging domestic producers from relying on assembly chains in China and relocating these to jurisdictions not impacted by the imposed tariff hikes. However, it appears that some measures are being relaxed given the potentially short term devastating effects for domestic producers – who eventually may have to pass greater proportion of costs to consumers. This is reflected by the current decision to withhold/delay some tariff hikes, a so called “Tactical Tariff Retreat” such that consumer spending is not impacted around Christmas the period.
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This page is a summary of: Strategic Economies and Alliances and Their Impact on Economic Outcomes, IGI Global,
DOI: 10.4018/978-1-5225-4131-8.ch001.
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Resources
Poor Chinese and German Economic Data Fan Fears of Global Slowdown
Poor Chinese and German Economic Data Fan Fears of Global Slowdown....
Global Stocks Fall Sharply As U.S China Spat Over Yuan Escalates Trade War
WSJ, (2019). “Global Stocks Fall Sharply As U.S China Spat Over Yuan Escalates Trade War” August 2019
Stocks Fall Sharply as Yuan Reels and Trump Jabs at China
Stocks Fall Sharply as Yuan Reels and Trump Jabs at China Dow, S&P, Nasdaq slide; Trump accuses China of engaging in currency manipulation
Stocks tumble as the two nations swap blows over trade
https://www.wsj.com/articles/chinas-currency-weakening-escalates-trade-war-11565027431 Stocks tumble as the two nations swap blows over trade Updated Aug. 5, 2019 10:47 pm ET
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