One of the big worries that many analysts have about what could end this relentless bull market is the prospect of a global trade war. Nations may turn to constantly trying to undercut one another in a fruitless race to outcompete that could damage all economies involved. Well, the odds of that occurring are looking stronger today as President Trump has just issued a stark warning to China—the US’ largest and most contentious trading partner. The message was the president’s approval of broad tariffs on Chinese solar panels and washing machines. Beijing reacted angrily to the new tariffs, saying it had “strong dissatisfaction”.
FINSUM: We don’t know where to stand on this issue. On the one hand we firmly believe that countries need to and should protect themselves from unfair competition. However, in a larger scope, such efforts can seem more like winning a battle and losing a war.