There are so many conflicting views on the US – China trade talks but some interesting comments are coming out of Lloyd Blankfein the former Goldman CEO, according to an article from CNBC by Evelyn Cheng. Apparently, this was from a tweet from mr Blankfein on Tuesday. He Tweets!!
The tensions between the top two economic powers spiked last week when President Donald Trump`s administration raised tariffs on $200 billion worth of imported goods from China from 10% to 25% after Trump accused China of backing away from promises. Beijing soon retaliated with by added a levy of 25% to $60 billion dollars of US goods earmarked for export to China.
Mr Blankfein said tariffs may cause buyers to switch their purchases to local or non-Chinese companies. Chinese companies will therefore lose revenues – and perhaps in the long run, market share. The US for its part, is demanding that China start creating a fairer business environment, Trump has focused on reducing the trade deficit with China but the issues there are structural.
This will likely be a trade war designed to open markets in China – a move that would men tariffs do not stay around forever. One would think that the future of trade will improve, only after a fair business environment is established.