Trade War between two countries affecting financial and commodity market
As we all know that past recent months the trade war between the world’s two biggest economies has resulted in big ups and downs in the global, financial and commodity market.
Past few days there was a big boom for this trade war because US applied million worth of tariffs on goods that were being imported from China to the US. US administration even charged high tariffs on imports of metal from Europe, Canada, and Mexico. The trade war was initiated by US President Donald Trump after charging unexpected tariffs on Chinese products and provided a reason,” that the country unfairly transfers American technology and intellectual property that are alarming for American jobs”, he said.
The American products that will be highly affected due to the imposition of the tariff will be vegetables, plastics, aircraft and chemicals. And China will be affected by tariffs on heavy equipment like machinery and electrical goods. Besides all of this hustle bustle, the US business community is not in the favour of the decision to impose trade tariffs, said one of our sources.
Largest lobbying groups of Washington being against this decision have already warned about the destruction of U.S manufacturers, farmers, and consumers.
Such a trade war would result in losses on both sides respectively due to which economy will be severely affected, Ignoring all the outcomings of this trade war the two countries are further challenging each other by imposing tariffs on each other products.
Concerns regarding the trade war between the world’s two biggest economies were initiated in March after the US imposed heavy tariffs on imports of steel and aluminium from China. However, the news impacted the global commodity prices in a somewhat mixed way.
The news not only affected the steel price but the Steel prices were weakened at the beginning and later, it recovered very strongly, especially in the Chinese market. Besides these lows and rises in prices of steel, ups and downs were seen in Aluminium prices and the similar kind of situation were seen in the market for other base metals as well. Talking about crude oil, this already elevated commodity continued in the positive momentum in the market.
Keeping present situations in mind, the tensions of the trade conflicts between two leading economies is still at boom as the US is further planning to restrict Chinese investments into the country. Reports even suggest that the US plans is planning to expand tariff on more Chinese goods in the upcoming days.