The trade dispute between the US and China took several interesting twists and turns during 2018 and experts believe the aftermath of the trade tensions will continue into 2019 as well. Both countries are expected to have another round of talks in early January.
After imposing several rounds of tariffs on each other during the year, the US and China agreed to a temporary truce nearly a month ago. The US agreed to put the next round of proposed tariffs, which were set to take effect on January 1, on hold while China in return removed tariffs on US automobiles and cut import duties on a range of other American goods.
Although China hopes for the tariffs issues to be solved, it believes the US will put forth some demands for this to take place, and the Asian country is said to be taking the necessary steps to prepare itself in case the discussions do not go as expected.
The trade dispute has affected businesses in both countries. In the US, some businesses have reportedly been facing more regulatory hurdles leading to delayed shipments and lost sales. During the year several companies said they were looking to shift production out of China to avoid hefty tariffs.
The tariffs will lead to increased prices in the US and lower demand for Chinese products, thereby taking a toll on China’s exports and its economy. The stock markets in both countries have been facing volatility due to the ongoing trade issues.
It remains to be seen how the talks turn out and what measures both countries will resort to during the coming year but if the trade dispute continues, it will definitely put pressure on businesses and the economies in both countries.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion
Comments