Both USA and China will be in trouble if they had not exited Trade War by just keeping some basic Tariffs and remove tariffs where not needed.
Definitely there will be loss to both USA and China because of trade war. Certain capital goods from China is needed from China to produce finished goods in USA.
Companies can not change their business models overnight.
Both USA government and China government should keep basic tariffs on only couple of products by keeping just what is good for their own country economy. Removing tariffs on other products will help both USA and China economies growth.
Let us repeat same statement written above:
Companies can not change their business models overnight. Based upon pre existing conditions companies had built their business model. Sudden tariffs will lead companies into losses.
Sudden tariffs will impact both economies negatively and negative impact companies growth both in USA and China.
In case if tariffs should be introduced then it should be done in phased manner by giving notice well in advance of 6 months to 1 year time.
So that companies will have minimum time to make certain modifications in their business model.
Recent WTO cutting growth % is example that trouble is ahead.
Recent manufacturing index is slowdown in USA.
GDP growth has slowed down in China.
Service sector contraction is visible in UK.
Auto sales has fallen down in India.
Service sector contraction is visible in India.
Brexit Deal is impacting both UK and Europe markets.
Closing Trade War by both countries USA and China with common mutual understanding is important.
Come to a deal which will benefit USA and China companies without negative impact to companies growth in USA and China.
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