According to the world’s largest finance company, Morgan Stanley, ongoing trade war tension between US-China is taking a toll on the economy of US. Trump decided to start that war, which is now getting ugly turn on the US itself. To dominate China in a trade war, Trump administration agreed to put a hefty amount of tariffs on Chinese goods and services. Even if China’s economy is now diminishing the US, on the other hand, is also not doing great.
Recently Trump administration tried to meet with Chinese officials, but that meeting didn’t go well, and as a result, both countries ended up having no trade agreement. Trump thinks China should stop copying US-based companies trade designs, but China is not accepting such type of allegations. Huawei is that tech company which has got banned in this trade war, but now Apple, Tesla and many other US companies are also going to face the same faith in Chinese market. Now analyst from Morgan Stanley thinks this trade war is going to affect on US economy by taking country into deadly recession
If trump administration put a tax of 25% on Chinese goods and services, then it would increase the chances of getting recession by more than 40%. The US economy hugely depends upon Chinese market because many businesses here directly imports goods from China at low cost. However, if trump administration put taxes of an additional 25% on such products, then the burden is going to be ultimately on consumers. Recently Donald Trump tweeted that he is trying to consider putting other taxes of five percent on Mexican goods. Wall Street is already in panic and investors are worried about the future of country’s economy. So it will be interesting to see how Trump is going to manage the situation if US hits to another recession.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.