Much is being said and written on the topic of an international trade war, led by mounting tensions in the complex U.S.-China relationship. With China on the rise and many in the U.S. seeking a return to the good old days of American greatness, the rhetoric–turned-reality of mounting trade tariffs is a troubling development that is beginning to spook investors worldwide.
In April 2018, China’s Ministry of Commerce proposed tariffs of up to 25 percent on $50 billion worth of U.S. goods, focused on the agricultural, automotive, and aerospace sector. This was in response to a proposed 25 percent U.S. tariff on China-made semi-conductors, electric vehicles, solar panels, aircraft parts, and other products announced on April 3. In July 2018, both of these proposals became policy, with the U.S. Administration subsequently proposing to ratchet up tariffs by $200 billion or even more on a broad range of consumer goods.
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