Should Investors Fear a Trade War With China?

In April, U.S. President Trump tossed a couple of punches at Chinese President, Xi Jinping.

Trump’s left hook was an import tariff on steel. His uppercut was a tariff on aluminum.

These tariffs are like taxes aimed at China. They’ll make it tougher for Chinese companies to sell goods to the United States.

But trade is a two-way street. China buys a lot of U.S. products. China’s economic success might even be great for U.S. stocks.

If China punches back with its own import tariffs, it could hurt American businesses.

That’s why a trade war makes people nervous.

Images from Pixabay

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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