The Trade War Has Reached a New Dimension 2021: MacBooks, Barbies, GAP T-Shirts and Quantities Are Now More Expensive
US trade negotiators returned from talks in Shanghai this week, US President Donald Trump was informed that China was reluctant to fulfill its promises to “buy agricultural products from the US” and “stop selling fentanyl”.
After all, China did not buy agricultural products from the US and did not stop selling fentanyl, a drug. On top of all this, Donald Trump started tweeting serially, as he did in similar situations.
Trump shared that an additional 10 percent tariff will be imposed on different Chinese products of $ 300 billion, excluding $ 250 billion of Chinese products, which have been covered by the 25 percent tariff so far.
Flaring up trade wars it affects almost everything…
On the US side, the S&P 500 (a beneficially large measure of all exchanges) fell 2 percent after the announcement. The Dow Jones Index fell one percent after the additional tax announcement. GE and Caterpillar, the well-established companies of the USA, lost 4 percent in value because they are both producing and selling in China. Except for these companies, Best Buy fell 11 percent and GAP fell 8 percent.
Oil prices then dropped by 7 percent because this tension between the two countries could affect global trade.
On the other hand, in Asian foreign exchange markets, the Chinese yuan fell to its lowest value against the US dollar since November last year, while the dollar reached.
Americans have hardly been affected by tax retaliation thus far. But now this time they are very close to feel the difference.
For political reasons, taxes were incurred on species that would not affect the lives of Americans until now. For example, rising prices on steel beams. But to further fuel the trade war, Trump has begun taxing consumer purchases (Barbie, Hot Wheels), clothes (which Americans should check labels) and technology (life).
Apple shares also fell 2 percent because MacBooks, iPhones, AirPods and more are made in China and will therefore now be more expensive.