But few trade economists would say that a trade war is good or that it should be sought out; most think
of trade wars as something to be avoided — or, at most, endured for the sake of protecting an industry that needs a helping hand from the government.
Stock market futures dropped after the news, a sign that the markets will experience volatility on Wednesday as investors see the odds
of a trade war as increasingly likely.
Not exact matches
The fact is, most economists agree that
trade deficits are not necessarily bad for the U.S. economy nor do they reflect some camouflaged version
of a
trade war,
as Ross asserts.
«There's no such thing
as a good
trade war,
as the recent history
of the Bush administration shows,» says Hensarling.
«We've been in a
trade war for decades,» new U.S. commerce secretary Wilbur Ross told Bloomberg News recently,
as he clarified why the U.S. is launching a radical series
of trade negotiations that will include a head - on collision with China and ripping up NAFTA.
When Trump announced the first round
of tariffs on China, it was seen
as a declaration
of a
trade war — a progressive effort by the two nations to damage each other economically, mainly through taxes and
trade restrictions.
But recent market turmoil reminded the world that share prices don't always go up,
as rising interest rates, sweeping technological change, and the possibility
of a
trade war stoked anxiety on Main Street and Wall Street.
US stocks tumbled Wednesday
as President Donald Trump escalated tensions with Russia through a series
of tweets, rattling investor nerves at a time when fears
of a global
trade war were starting to ebb.
CNBC's Jackie DeAngelis reports on the ETFs market
as energy leads today's rally despite the threat
of a
trade war.
Even
as U.S. officials try to assure Americans that a
war -
of - words with China over
trade tariffs is merely a negotiation tactic, the National Retail Federation is highlighting just how much the U.S. has to lose if a
trade war does come to pass.
The U.S. dollar slipped to a five - week low
as optimism the US and China are set to begin negotiations on
trade helped ease fears
of a
trade war.
With President Donald Trump due to arrive in Germany later on Thursday, a lawmaker in the country has voiced concerns over a potential
trade war between the U.S. and Europe
as a result
of Trump's protectionist policies.
As fears
of a global
trade war capture the attention
of investors, JPMorgan CEO Jamie Dimon is turning a watchful eye to something that has been largely swept under the rug: the Federal Reserve's unprecedented monetary tightening and the impact it could have on markets.
It is easy to laugh at the bizarre logic which lies behind the
trade war started by US President Donald Trump, but in countries on the fringe
of a remarkable global event, such
as Australia, the laughing will soon stop.
European equities finished Tuesday's session slightly higher,
as investors appeared to shrug off concerns
of a potential
trade war and uncertainty following Italy's election result.
Marc Chandler, head
of fixed - income strategy at Brown Brothers Harriman, said he does not see the potential tariffs
as the start
of a
trade war, but the move would be a volley that could have implications for global
trade.
LONDON, April 11 - The U.S. dollar slipped to a two - week low against a basket
of currencies on Wednesday
as trade war fears receded but uncertainty over possible Western military action against Syria bred risk aversion among some investors.
«Recent geopolitical developments have led me to raise my probabilities
of trade and other types
of wars, such
as capital
wars, cyber
wars (and possibly even shooting
wars),» Dalio writes.
Ignore all the day - to - day headlines out
of Washington, he said on «Fast Money Halftime Report,» even
as equities were coming intense under pressure on concerns about a
trade war after President Donald Trump announced steel and aluminum tariffs.
Now,
as a
trade war with the United States looms, a government decision to accelerate the development
of the domestic chip industry underlines how far those goals have fallen short.
Already, the 10 - year yield has dropped back to 2.8 percent — largely
as a result
of President Donald Trump's desire to initiate
trade wars.
Before a possible global
trade war became investors» biggest concerns, overheating inflation was seen
as the most likely cause
of a market meltdown.
«I think at the end
of the day that virtually all
of the «
trade war» effects will be negotiated away and the true economic impact on industries
as well
as specific companies will be very small, so I haven't factored the impact
of any
trade war considerations into my portfolio,» she said.
Paul Wells
of the Toronto Star wrote at the end
of July that Canada should be ready to fight a
trade war, «
as soon
as a Trump presidency stops being hypothetical.»
The Japanese currency has been mostly on the rise against the U.S. dollar
as investors look for a safe haven amid fears
of a global
trade war.
The long - term battle on
trade between the U.S. and China shows no sign
of ending
as a
war of words ensued this week between the two.
The prospect
of tariffs has created deep concerns in Canada, the No. 1 supplier
of both steel and aluminum to the U.S. Ottawa has hinted at retaliatory action,
as have the European Union and Mexico, in what could become an all - out
trade war.
China is reportedly moving to avert a
trade war, by speeding up the finalization
of new rules that would let foreign financial groups take majority stakes in Chinese securities companies, and by offering to buy more semiconductors from the U.S.
as opposed to South Korea and Taiwan.
President Donald Trump's latest round
of tariffs against Chinese imports have prompted U.S. allies in Asia such
as South Korea, Australia and Japan to call for calm to avoid a
trade war.
If tensions between China and the U.S. explode into a
trade war, Calvasina says the utilities sector could act
as one
of the few places to escape the fallout.
The United States and China have threatened each other with tens
of billions
of dollars in tariffs in recent weeks, fanning worries
of a full - blown
trade war that could hurt global supply chains
as well
as business investment plans.
The ministers frequently evoked their close relationship, but there was an undercurrent
of tension
as the threat
of trade war and the prospect
of NAFTA's collapse loomed over the panel.
So for now, we're still in the bluff and bluster phase; technically speaking, the current conflict is better described
as a
war of words than a
trade war.
The anti-protectionism comments come
as market sentiment sours with signs
of a looming
trade war between the United States, China and Europe over U.S. President Donald Trump's plans to raise tariffs on steel and aluminium imports, and possibly up to $ 60 billion worth
of Chinese imports, targeting technology and telecommunications sectors.
Despite having a troubled relationship with India since the Sino - Indian
War of 1962, China knows that having Most Favored Nation status with the U.S. (rechristened
as Permanent Normal
Trade Relations) is much too important to jeopardize.
In March, equities were under pressure after concerns
of tougher regulation on tech companies
as well
as over fears
of a potential global
trade war.
Uhlenkott points out that it's the small and medium - size enterprises,
as opposed to larger manufacturers
of automobiles and airplanes, that are likely to be put out
of business in a
trade war.
«
Trade wars create a lot
of casualties among innocent bystanders, and there are direct order effects
as well
as second and third - order effects.»
«I recommend routinely tracking what the industry analyst firms like Gartner are reporting about your industry,
as well
as trade associations and advocacy groups,» says Becky Sheetz - Runkle, author
of Sun Tzu for Women: The Art
of War for Winning in Business.
Additionally, any imposition
of trade barriers or labeling China a currency manipulator may lead to a
trade war or, at the least, be a drag on economic growth,
as noted by Jan Hatzius, chief economist at Goldman Sachs.
Stock markets have since risen
as Chinese President Xi Jinping has eased investor fears
of a
trade war by promising to cut import restrictions.
The Bill 12 legislation and the
trade war escalation it might spark would damage Alberta and Canadian businesses and citizens
as well
as those in British Columbia, warned Greg D'Avignon, CEO
of the Business Council
of B.C.
Gold has fluctuated
as investors rated prospects
of a U.S. - China
trade war.
Several analysts have said that the global scope
of the penalty, combined with the use
of national security
as an excuse, raises the risk
of a cascading series
of reprisals that threatens the stability
of the post-Second World
War trading system.
The planned tariffs have roiled world stock markets
as investors worried about the prospect
of an escalating
trade war that would derail global economic growth.
NEW YORK, March 5 - Treasuries yields rose on Monday afternoon
as the U.S. stock market recovered and fears
of a
trade war eased after senior Republicans urged President Donald Trump to reconsider his threat to impose tariffs on imported steel and aluminum.
Pecan growers and suppliers are hoping to sell U.S. consumers on the virtues
of North America's only native nut
as a hedge against a potential
trade war with China, the pecan's largest export market.
Earlier comments from Trump had stoked talk
of a global
trade war as he described them
as easy to win and issued a threat to German carmakers.
Trade -
war fears could be a longer - term negative for the dollar, even
as the currency gets a temporary lift ahead
of the Fed's meeting next week.
Worries
of escalating
trade wars could be a longer - term negative for the dollar, even
as the currency gets a temporary lift ahead
of the Fed's meeting next week.