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Trade Tariffs Slump China and US Stock Market Badly
By InvestingNote  •  June 26, 2018
But first, what are trade tariffs?

A tariff is basically a tax paid on imports and exports of goods and services.

An imposing tax on an imported product would cause its price to increase, which results in a decrease in demand for imported goods. In relation, the price of local products becomes lower to the consumer.

The US Total Imports vs Dutiable Imports from 1821 to 2016 can be seen below:

source: wikimedia commons

The current US deficit as of 2017 is $500 billion. The US imports from China about four times as much as it sells to that country in goods as services, leaving Washington more room than Beijing to tax a greater share of bilateral trade. The U.S. trade deficit with China was $375 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion. The United States imports consumer electronics, clothing, and machinery from China. A lot of the imports

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By InvestingNote
InvestingNote is Singapore’s first & largest community-driven platform where investors and traders from all levels connect and share ideas with one another.
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