Mr Uranium
The China-US trade war has changed direction yet again. Donald Trump's description of America as the greatest country in the world has led him to recently announce an interim tariff reprieve for just 90 days, with an across-the-board tariff on nearly all countries at 10%. China has been slapped with an even harsher tariff of as high as 125%, justified on the grounds of "lack of respect" on the part of China.
This unexpected move shook the world markets, and shares fell initially in response. The market then stabilized, and Apple shares rose over 11%, for example, showing how volatile this market is in this ongoing trade dispute.
U.S. Treasury officials have been clear that "everything is negotiable," indicating there could be room for maneuver further down the road. The U.S. response will vary depending on the country in question. With China, a White House spokesman stated their measures have been in direct response to Chinese provocations: "They escalated, so we escalated."
As we wait for whatever happens in this contentious trade war, one is left with the question: are these decisions in these freezes on tariffs and this tit-for-tat doing any good for anyone? Is this show of power worth the economic uncertainty, or is it just political posturing for the sake of it?
The future is uncertain as far as the US-China relationship is concerned, but one thing is certain: the economic climate is certain to undergo additional alterations before any resolution is reached. Will the US and China decide to cool down the tensions, or will their trade war again ravage global markets?
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