Platinum Swing Trade Alerts

The 10-Buck Broker (Long-Term Stock Picks)


No announcement yet.

Here's the worst-case scenario for the US-China trade war

  • Filter
  • Time
  • Show
Clear All
new posts

  • Here's the worst-case scenario for the US-China trade war

    New York (CNN Business)It turns out trade wars are not short and not so easy to win, as President Donald Trump once tweeted. As the US-China trade war drags on, economists are sharpening their pencils, forecasting what a protracted trade war would cost.

    The Organization for Economic Cooperation and Development warns an escalation would hurt the US economy and damage the rest of the world, shaving 0.7% from global growth by the year 2021. That's roughly $600 billion. The OECD sees the potential for new trade barriers between the United States and the European Union and Brexit-related uncertainties, as well.
    In an analyst note, Morgan Stanley finds the window for resolving the trade dispute is narrowing. Without resolution in the next month, the trade war will bite into global growth.

    "If talks stall, no deal is agreed upon and the US imposes 25% tariffs on the remaining $300 billion of imports from China, we see the global economy heading towards recession," Morgan Stanley's analysts wrote. Under that scenario, the US Federal Reserve would have to cut interest rates, ultimately back to zero and China would need huge new stimulus, they said.At Bank of America, analysts report the trade war has already hurt confidence on Main Street, noting a protracted trade war "could have a meaningful impact on consumer spending."
    America's top retailers are already bracing for that impact. Kohl's (KSS), Home Depot (HD) and Walmart (WMT) have said tariffs will lead to higher prices on some items. The Footwear Distributors and Retailers of America, a trade association, said an escalation in tariffs on shoes would be "catastrophic." Roughly 72% of all footwear sold in the US in 2017 was made in China, according to another industry trade group.
    It will mean higher prices for consumers, or lower profits for companies. That can mean fewer jobs.
    But a year into the trade war, there is a growing realization that Trump's tariff regime may become permanent.Over the past year, the White House has imposed tariffs on foreign steel and aluminum, on $50 billion in high-tech goods from China, on another $200 billion in commodities and maufacturing components from China, and has now begun the process of putting import taxes on everything else the US buys from there.
    The president dismisses these concerns, admonishing American companies to manufacture in the United States if they want to avoid tariffs. The president's advisers say, US economy is strong enough to absorb any hit.
    - CNN Business
    Platinum Swing Trade Stock Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Picks)

    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!

    Best FOREX Signals Software

    Stock Market Investing For Beginners

    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    Good KARMA and positive energy abound.

    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA

  • #2
    I'm actually a Trump supporter but I wish he'd shut the **** up sometimes. I mean may was just annoying as all hell. No trader can prepare for random tweets from the president.


    • #3
      I hear there are a crapload of Trump supporters who are suffering under these trade war tweets. Well crap