Financial Ramifications Of The China-U.S. Trade War

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4 months ago

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President Donald Trump made the official announcement that the U.S. will be imposing tariffs for exporting goods to China. Financial experts are predicting problems for the future including the tech industry and possible future U.S. investments in China, whether imposing tariffs is a solution to resolving trade issues.

The Managing Partner of MSA, Ben Harburg, shows concerns on the challenges in forcing technology transfer and IP protection. Harburg goes onto say that these are legitimate issues that the U.S. government faces with China, with the problem being when the Chinese government speak with the U.S. about these issues are rejected with measures of extreme pressure. The result of these negotiation tactics leave both parties without negotiation options, with no defined set of policies or standards.

The CEO of Safand, John Rutledge argues that export tariffs is not the way to obtain results and offers a solution that doesn’t call for tariffs. Safand calls for more open trade and markets, also calling for more intellectual property protection. He feels that to obtain the desired results this drastic change isn’t needed since supply chains are complex.

Safand also imparts the consequences of changing aspects of the supply chain that can lead to possible shut-down. He goes onto say that we need a more open financial market but feels that tariffs are not the way to change this.

The imposing of exporting tariffs also puts pressure on suppliers in the change of their business and for future investments. The U.S. tariffs on China include auto parts, medical insurance, aerospace, and information technology. The Chinese tariffs on the U.S. include soybeans, other cash crops, beef, pork, chicken, seafood, whiskey, spirits, and cars.

Though there is a new tariff on imports many will still rely on getting their goods from other countries. There are reports that campaign officials for Trump’s presidential re-election campaign are ordering flags that are made in a Chinese factory owned by Li Jiang. Check out the video above for more on the China-U.S. trade war.

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