Recently, President Donald Trump decided to impose tariffs on about $50 billion worth of imports from China – This is when the trading war between U.S. and China started and escalated. The white house claimed this new restriction is executed in response to Beijing’s longstanding theft of US companies’ intellectual property.
Asian stocks struggled since Tuesday, June 19, 2018. The marketing is being kept dragging down for the past 2 weeks by the fears that China and Trump administration would plunging deeper into the trading competition with no easy way to exit.
At the meanwhile, Wall Street had its worst day of the month one day after the slump in Asia market. The US market slide more than 475 points (2 percent).
An additional tariff on $34 billion worth of Chinese products are scheduled to carry out on July 6. This policy spiked Chinese central bank to pump more than $100 billion to the financial system of the country. This policy was a signal that China is responding to an economic slowdown but also bracing for a possible long-haul trade fight with the Trump government.
Ahn Deuk-geun, an international trade expert at Seoul National University’s Graduate School of International Studies, said the recent decline in Asian stocks “shows the impact of escalating trade war between China and the U.S.”
“Even amid relieved geopolitical tensions following North Korea rapprochement,” Ahn said, “the jitters about the China trade tensions seem to have an overpowering impact on the markets.”