WTO says global trade expansion will slow down following trade tensions
WTO’s latest World Trade Outlook Indicator (WTOI) shows that trade expansion will likely slow further in the third quarter of 2018.
WTO's latest World Trade Outlook Indicator (WTOI) shows that trade expansion will likely slow further in the third quarter of 2018.
The most recent WTOI reading of 100.3 is below the previous value of 101.8 and just above the baseline value of 100 for the index, signaling an easing of trade growth in the coming months in line with medium-term trends.
This loss of momentum is possibly due to the to the ratcheting up of trade tensions and reflects weakness in component indices including export orders and automobile production and sales.
The United States has finalized the next China tariff list targeting another USD 16 billion in imports as of Aug. 23, the US Trade Representative's office said. Following this, China is also slapping additional tariffs of 25 percent on USD 16 billion worth of US imports from fuel and steel products to autos and medical equipment.
The United States had already imposed tariffs on USD 34 billion of Chinese imports. In return, China has levied taxes on the same value of US products. Donald Trump had warned that he is willing to impose tariffs on Chinese imports of as much as USD 500 billion if needed.
Reuters reported that following these tensions some European companies are rethinking their strategies to cushion the impact of trade tensions between the world's two biggest economies, the United States and China.