I still do not think that the trade war between China and the US will cause a world recession. Then again, I am not an economist and even an economist may not get his prediction right. 🙂 Earlier news article here: Recession within 12 months if China-US trade war worsens. However, I am also not sure how many ‘wars’ that the US will be picking on. The reason I say so is because everyone knows the main reason for picking on China is due to the trade deficit which the US is having with China. When we look a little deeper, the US seems to have trade deficit with MANY countries including even Malaysia. Yes, they have also put us into the same watchlist as China for potential currency manipulation. (click here to read) Only a watchlist ok, they did not say we are, yet. So, a new trade war may be on the way?
Article in cnn.com here President Trump has ended a special trade treatment for India. This removes India from a status that exempts billions of dollars of Indian imports from US tariffs. Trump said, “I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets.” Thus, India will be terminated from its designation as a beneficiary of a developing country. The tariffs will apply to “large residence” washing machines and solar cells and panels from India.
This was India’s response. India’s government said it was “unfortunate” that the US did not accept India’s offer of a resolution.” In any relationship, in particular in the area of economic ties, there are ongoing issues which get resolved mutually from time to time. We view this issue as a part of this regular process and will continue to build on our strong ties with the US, both economic and people-to-people.” Article in cnn.com here
India’s response is a little meek at the moment I must say but perhaps that’s also because the effects from the end of the trade treatment by the US has not been felt thoroughly yet. Besides, India’s PM Narendra Modi has also just won re-election with a bigger majority just over a week ago. Any response from a fully working government will likely happen only when Modi has already have his full cabinet ministers in place. India is the world’s 6th largest economy and it’s FAST GROWING too. Here’s those numbers. Perhaps best to make India a friend instead of foe when it concerns trade? India is Malaysia’s 10th largest trading partner and there’s also this news that we may be buying fighter jets from them too! (news here) Happy following the uncertainties of trade wars between top economic superpowers.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
<Featured Image is courtesy of Stock Photos from Joe Ravi >
Next suggested article: China’s richest woman? Property related