TRADE CHECK-INEconomic Commentary |
The U.S.-China trade dispute has carried on for about eight months, with no agreement in sight. To date, the U.S. has imposed tariffs on about $250 billion in Chinese goods, representing about half of what the U.S. imported from China last year. In turn, China has retaliated with its own tariffs on $100 billion in imported U.S. goods.
So far, the global economy has avoided a trade breakdown, as exports and imports are growing steadily for both the U.S. and China. However, small cracks are forming in the global economy due to the indirect impact of trade tensions, and leading trends show a prolonged dispute or more severe tariffs could exacerbate these effects.
John Lynch Chief Investment Strategist, LPL Financial
Barry Gilbert, PhD, CFA Asset Allocation Strategist, LPL Financial