The trade war between China and the US has had wide-ranging repercussions. The tensions between both countries led to a drop in business growth, economic instability, and alarm among investors, business owners, and the general population.
Increased tariffs and taxes on Chinese goods increased prices significantly and caused the tech industries in both countries to suffer. Important technology, hardware, and software were unable to be exchanged and the trickle down effect was felt across the globe.
What this means for investments…
The trade war directly affects profits from investments. And while investors are looking hopeful, watching the economy continue to grow, there’s still a push towards preventing further tariffs. However, even increased tariffs and uncertainty didn’t seem to faze investors, with both Microsoft and Oracle stocks rising in value.
The Federal Reserve is predicted to cut interest rates considering the prevailing conditions. The war seems to be intensifying, but corporations like Apple have pushed for a truce, given the impact on taxes and rebates.
Signs of worry?
There’s no being certain that a deal will be struck, but between last month and now, the chances of some mutual ground being found are higher. Both economies have suffered, as have stock markets and financial hubs such as Wall Street, and businesses are concerned about the long-term effects these tensions will have.
It’s difficult to ascertain exactly what direction this modern warfare will take, but analysts are hopeful and expectant of positive outcomes. We can only wait and watch now.
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