US & China Increase Tariffs During Trade Talks
The U.S. and China announced an increase in tariffs on a multitude of goods as the trade war continues. The tariffs on the U.S. side were set on 16 billion dollars worth of Chinese goods. These goods include automobiles, factory machinery, and metals. China is one of the world’s leading suppliers of factory machinery which means this specific tariff could have an impact on a wide number of industries on both sides! The increase comes on a day when both countries are set to continue trade talks in Washington. We have no record as to what was said in the talks. We can imagine though that the ones that took place this morning may have been a little tense.
China’s Economy Begins To Slip
We have already reported that there had been not only economic but political backlash in China amidst the current economic situation. Today economic commentator Hu Xingdou spoke to various news outlets expressing the Chinese fears with regards to the trade war.
“It’s not just the tariff war that China’s having to deal with at the moment, the economy is also starting to slow and you’re seeing signs of a lack of confidence among consumers. Consumers are starting to spend less to tighten their belts. They worry not so much about what’s happening with the trade war, but what’s going to happen in the future,” Hu Xingdou said.
With the local economy starting on a downward trend it would seem that China is in more of a hurry to get a deal done. With this new increase in tariffs, the U.S. is confident that it has the leverage to squeeze the Chinese into a better deal. The numbers in the U.S. stock market certainly indicate that this is precisely correct. Despite political turmoil U.S. consumers are still powering the economy forward. So far the trade war has had little effect on most people’s bottom line. With notable exceptions mostly in the farming industry!