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

Read the rest of the story here

 


worlds best value financial advisor

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.

You may also like...

Leave a Reply

By commenting you confirm you have read and that you agree to the conditions set out on the Legal Page, including the Privacy Policy, and Comments PolicyFor your privacy we strongly recommend you do not use your real name. Your email address will not be published but it may show your photo or recognizable image -- if associated with gravatar.com or similar website. It is strongly suggest you do not use a corporate or school email address. We reserve the right not to publish comments that do not meet guidelines. Published comments will not be deleted.