InvestorQ : What is the latest on the trade war situation because I understand the situation worsened over the week end?
Ria Jain made post

What is the latest on the trade war situation because I understand the situation worsened over the week end?

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Anu Biswas answered.
1 year ago
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You are right that things did take a turn for the worse on Friday on the trade war front. To begin with, China went ahead and imposed higher tariffs on imports worth $75 billion from the US. This was done as a retaliation measure after the US had threatened to increase tariffs across the board on Chinese imports. In fact, the equity markets and the oil markets reacted negatively but worse were yet to come.

In response, Trump has already asked American companies to make necessary plans to exit China totally. A lot of US companies like Apple, Nike and Boeing have a significant presence in China. In fact, in the last few years some of the US companies have been looking at alternatives like Vietnam and China but they have not been too happy with the quality of infrastructure, worker skill sets and the government policy vis-à-vis business. These are things that businesses find a lot more favorable in China as compared to other countries. However, a call from no less than the President of the US to American companies to exit China is not a good sign and could have larger repercussions. This could also impact markets when they open on Monday.

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