Beijing retaliated quickly, announcing similar-size tariffs on an unspecified group of American goods. No official talks are scheduled, and there’s disagreement in the Trump administration about how to proceed, so a quick resolution seems unlikely.
Until then, expect increased costs for many businesses and consumers, and greater volatility in global stocks.
Siajona a local economist telling us how the Kenya economy could get affected if this thing keeps up or escalates. I am sure Kenya economy will get affected somehow.
but I thought the U.S has zero impact on planet earth nowadays juu ni China inaongea. Or so I heard around these parts. Why are folks worried na wako na China na China ni hehe ni hehe ni superpower… hehehe.
We are all switching to the Chinese currency, they said. The dollar is finished, they said. Trump will kiss rings, they said.
To understand this thing, don’t think short term. With duties on imports, trade balances will be disrupted. The big sectors in the economies of the said superpowers will get haemorrhage. This are automanufacturing, agriculture, technology-semiconductors, just to name afew.
With the increased cost of business, the cost will be passed to the consumer as always. Consumption trends may change affecting inflation. CPI readings could stagnate or slump. Slowly PMIs will approach 50s below which it is proved the economic growth is slowing down.
The effects won’t be overnight, but a slow China/US economy affects the entire globe.
Someone asked how Kenya will be affected. Think of the things we import, where the raw materials are sourced and where the manufacturing occurs. Also during economic uncertainty while the US economy is good investors purchase the dollar. Meaning its value goes up and Kenyan importers pay more…
Time zingine do u even listen to urself? China’s policies and dominance have made USA rethink its world position.thats why trump is hitting hard on them coz he nows eventually China will replace them as a world power if they go unchecked
Na sio nyinyi pekee, economists predicted around 2011 that China would surpass the U.S. economically by 2019, 2020 lakini wapi. Some even said 2016.
Kukuwa super power ni ku influence many spheres. For instance right now you would seriously be considering to enrol for mandarin classes or enrol your child for Chinese language classes to prepare him for the foreseeable future.
There are so many aspects that go into becoming a superpower in both soft and hard power.
You are forgetting one small item…that of China stealing American Intellectual property. And that has been an issue with presidencies before Trump. Only that Trump had the balls to confront the chinese.