The next generation of smarter and more powerful machines will rely on even more sophisticated semiconductors to achieve new capabilities. Pressure is on to “win” in the global chip race, which is why efforts to protect innovations in chipmaking are front and center in the current trade war – for better and for worse.
As negotiations continue toward a trade agreement, President Trump and President Xi of China have imposed tariffs on each country’s products in an unprecedented trade war. If you’ve lost track of how we got here, here is a handy quick guide to recent events unfolding in the ongoing U.S.-China trade war.
As the U.S.-China trade war rages, two-way foreign direct investment (FDI) is plummeting. So far this year, combined two-way U.S. and Chinese FDI totals just $9.9 billion – its lowest six-month value in five years. At the same time, venture capital investment is becoming an increasingly bigger piece of the U.S.-China investment puzzle.
California almond growers have reason to worry about access to one of their biggest export markets. The Indian government increased tariffs on U.S. shelled almonds by 20 percent and non-shelled almonds by 17 percent in June. The increased cost is forecasted to cause a five percent drop in U.S. almond exports to India, impacting the 6,800 almond growers in California, who are mostly small to medium-size, family-run enterprises.
U.S. businesses are preparing for another possible wave of tariffs while seeking product exclusions from existing tariffs on goods from China. Find out how the Trump administration is responding to these product exclusion requests, and keep track of the “tranches” or waves of tariffs announced or implemented by the administration using our graphic.
Economists can’t tell you how tariffs impact your own business, your job or your shopping cart. Nonetheless, as tariffs are set to go higher, we look at how economists are dialing the tariffs into their forecasts about growth for the U.S. and global economy.
China is stockpiling its rare earths production. Does China think the United States is trying to contain China’s economic expansion? Threatening to withhold rare earths exports could be China’s way of digging into this trade war with the United States.
There are rough waters ahead for shippers dealing with the tariff uncertainties. The prospect of tariff hikes is incentivizing companies to lock in better shipping prices now. But many retailers are competing just to find space for their goods on an ocean carrier, and the shipment surge has resulted in massive congestion at ports and warehouses.
In September last year, the Trump Administration finalized a list of $200 billion in imported goods subject to tariffs. The list included rubberized textile fabrics, affecting water resistant clothing. Find out how apparel and footwear companies are weathering the storm of tariffs on imports from China.
There are some in the United States who are frustrated with the administration’s willingness to toss out the traditional trade policy playbook, but if trade talks over soybeans and intellectual property protections can be leveraged to address illicit trade in deadly fentanyl, we can all get on board with that.