27 May U.S. China Trade War Update
The trade war between the United States and China has been escalating day by day. With each new development, there comes new troubles. Troubles that may have been previously foreseen, but new troubles, nonetheless. As our governments continue to debate back and forth, many of us on the home front are getting the raw end of the deal, farmers to be specific. The backlash of this dispute gone wrong is starting to rear its head in our everyday lives and it’s only getting worse.
Updates between Beijing and Washington D.C. have created a dynamic situation worth staying informed on. Xi Jimping has told the people of his country to prepare for a long and difficult trade war with the U.S. This came in as the negotiations between the worlds largest economies collapsed. Trump went through on his word to raise the tariffs on $200 billion worth of Chinese goods from 10% to 25% while China retaliated by doing the same to $60 billion worth of American goods. This has without a doubt taken its toll on the Chinese economy, however on the Homefront, our farmers are taking largest amount of the damage due to the lack of corn and soy exports after the tariffs were imposed.
The American based agriculture machinery company John Deere felt the first wave of the economic backlash as their stocks plummeted 7% in one day. This happened after news spread of the poor developments in the trade negotiations between the two countries. By May 13th the big three U.S. averages were all down by at least 2.3%. Sooner than later we are going to be feeling the effects from this in all areas of our economy. Our governments may be at war but it’s the everyday citizen that will pay the price.
The trade war with China will eventually figure itself out, but it is imperative for us to be prepared for the repercussions. Trump may have offered $16 billion in relief to the farmers who are suffering the most sooner than the rest of us are, but that isn’t fixing the problem, its putting a band-aid on it. Although the two leaders are meeting at the G-20 summit next month, both U.S. and Chinese officials have stated that there is not likely an end to this war in sight. Sooner or later this trade war is going to affect us as well as our pockets. In times like this it is important to remain well informed. Remember, Plan Smarter Live Better.