It has been several months since I last wrote about the on-going trade war between the US and China (reference Xport’s Blog from September). Please rest assured that while I may not have been talking about the subject, it has always stayed at the forefront of thought. So when in the Wall Street Journal it was highlighted by reporters Grace Zhu and Liyan Qi that Chinese imports to the “US tumbled 4.4%,” I thought it important to reload this discussion on tariffs and the impact they are having on the larger community.
First, imports to the US spiked in November in accordance with expectations as retailers sought to stock up for the holiday buying season. As reported in the WSJ, it was “expected that this trend would continue into December.” However, it did not. Instead, with approximately 50% of Chinese products under tariff and with projections of the Chinese economy slowing to 6.3% in 2019, we have seen that the Trump administration’s actions may be eliciting a response. The question is… is this good or bad?
In the coming weeks, I will post more information about ongoing trade war and its continued impact on the industry. Of interest will be the confluence between the trade war and the US government shutdown. Will there be unintended consequences on trade from these simultaneous events? Future discussions will try to answer this question and more.