Trump’s action regarding trade war with China brings huge loss to US; Study reveals
March 17, 2019 | Investopaper
A study by a team of economists at leading American universities has revealed that the cost of the trade war between China and the US that skied last year was huge. The team showed that the US economy was hit by the huge loss of $7.8 billion in GDP in 2018.
In this period, the short term impact of Trump’s action resulted in the decline in import from targeted countries. The decline was reported to be at around 31.5 percent. Similarly, Trump’s action also resulted to fall in exports by 11 percent. Also, the consumers and producer had to bear huge losses from higher tariffs on import amounting to $68.8 billion.
The trade war has affected both the US and China as the latter has also reported the slowdown in its economy. The US also faced the longest partial government shutdown. The trade talk between the countries to resolve the trade disputes has given some positive boost to the investors in both countries.
