The tariffs are deemed as an attempt by the US government to get China to change its trade policies meaningfully. However, some economists have opined that tariffs are not a solution to trade deficits while also predicting that the current trade tensions could continue for another two years.
A group of technology companies has requested for exemption from the tariffs claiming that the higher prices would affect everyone in the industry along with customers and also hurt profits and development.
Meanwhile, a report by the Wall Street Journal says that President Trump is planning to take the tariff fight to Japan. The president is said to have indicated that the third largest economy, which makes significant vehicle exports to the US, would be the next to face tariffs. Apart from China, the Trump administration has imposed tariffs on Canada, Mexico and Europe.
Amid the trade tensions, a positive jobs report brought optimism over job growth and wage increases but the growth in earnings raised concerns over changes in monetary policies. There are also possibilities of rate hikes by the Fed this year.
Trade war: Fresh Chinese tariffs dim hopes for near-term resolution