The escalating trade conflict between US and China making the US financial confidence concerns over various sectors of the economy. Trade War Fallout heightened the fears of a global recession, leading to sharp decline in global stock. markets and a slump in oil prices below $60 a barrel.
What sectors are most affected by the U.S.-China trade war?
The most affected sectors including Manufacturing, agriculture and technology sectors hit hard by Trump tariffs because their supply chain has disrupted and increased costs of goods.
In New York Post reports, CEO Jamie Dimon warns “The outcome is probably recession because markets crisis, when you see 2000-point decline in the Dow Jones Industrial Average, it sort of feeds on itself.
Market Volatility
Such declines negatively affect consumer confidence and spending. Major stock indexes fell sharply after latest retaliatory tariffs between US and China as investors move out their money because of fear in the market.
People become more worried after China announced it would impose an 84% tariff on all US goods. China response hardly on US tariffs.
How do tariffs impact the average consumer?
Tariffs can lead to higher prices for imported goods, that will pass on to consumers means increase costs for everyday products.
Major Trade War Fallout effects
Investors are becoming more careful, With Safe Havens like gold and US treasuries are attracting money as reflecting growing fear of a deeper financial downturn.
Stock market have sharply decline, investors reacted to the escalating tariffs and economic uncertainty. On April 9, Dow dropped by nearly 2,000 points, and S&P 500 have seen declining heavily.
Corporate Reactions
Higher cost on import goods and sluggish demand from China making major companies including tech and automotive sector very lower profits which triggers them to issue warnings.
Firms delayed future investments on big plans amid the uncertainty of long-term tariff policy.
Global economic slowdown
Oil prices has dropped to $60 a barrel because traders fear the global demand slowdown. Trade War Fallout revised global growth projections are expected in the very future. In reports, GDP has possibly going down to 0.3-0.5%.
Can this lead to a global recession?
If these tariffs still on place the not just US but every country has going down in growth led to economic disaster. Both country triggering the trade war more harden that will impact on business downsize. Global trade volumes and investment flows are already being hit.
Read also: EU Tariffs on U.S. Goods
U.S. Domestic Impact
Republican lawmakers have expressed growing difficulty about the tariff policy, fearing harm to U.S. manufacturers and potential retaliation against American farmers.
American farmers are facing new challenges, with China’s retaliatory tariffs have targeted soybeans, corn, and pork. Targeted key exports of US that supported Trump. Rural areas are those regions which voted for Trump in 2016 and 2020.
Manufacturing sector facing tough time because many essential products have come from China. Companies production costs get higher, and some are considering layoffs.
Conclusion
Investors are becoming more careful as Trade War Fallout, US China trade war conflict affecting both the countries. Experts highlighting the outcome of this is likely a recession, some says if tariffs places then we face a global economy downfall very soon.
