Are We Ready To Rumble?

June 9, 2018

In March, President Trump announced that he would put a hefty tariff on steel and aluminum imports, but that US allies Canada and Mexico would be exempt from these tariffs. Well, it seems Trump’s tune has changed. Earlier this month, Trump announced that he would be slapping a tariff on Canadian, Mexican, and European Union steel and aluminum after all. How do you think these countries responded? You guessed it—with just as hefty of a tariff on US imports!

How are trade talks going with China? What seemed like a potential trade war brewing between two of the world’s largest economies seemed like it was beginning to simmer … but that was soooo two months ago. A renewed trade war might just be igniting again if the two countries fail to negotiate a trade deal before tariffs go into effect. What’s the main sticking point in these trade negotiations? The US wants China to purchase more of its goods. How much more is the question. China wants the US to lift a ban that was placed on one of its major telecom companies. This company relies heavily on US products to make their smartphones. Since the ban, they have had to stop a major part of their operations. After all, how can you make smartphones if you can’t get the parts to make them, right? Negotiation talks are continuing, but as with most negotiations, both sides must give a little in order to get a little. We’ll just have to wait and see when “a little” is enough for both the US and China. To be continued …