The biggest risks facing the world economy today stem from the escalating trade war between the United States and China. In 2018, the US exported goods worth $120.3 billion to China—a substantial amount, but dwarfed by the $539.5 billion of goods that it imported from China. In retaliation, China imposed reciprocal tariffs on $60 billion worth of US exports, scheduled to take effect on 1 June. Higher tariffs will make those inputs more expensive or scarcer, hurting US productivity and competitiveness and taking a deep bite out of the economy’s growth potential. In 2018, for example, the US imported $29.8 billion worth of clothing from China and a further $20 billion worth of leather and related goods.

Source: Mint June 02, 2019 17:26 UTC