Fort Russ’s Editor-in-Chief and Center for Syncretic Studies’ Joaquin Flores debates on Indus News’ News Wire with Ayza Omar on US-China Trade War.
Consumers “are unequivocally the losers” from the US-China trade war, according to new research by the International Monetary Fund, which outlines the damage the long-running dispute is doing to both sides.
The research, published on Thursday, found that “tariff revenue collected has been borne almost entirely by US importers”. Extrapolating that further, the International Monetary Fund (IMF) found that “some of these tariffs have been passed on to US consumers”, highlighting the rising cost of goods such as washing machines.
“A further increase in tariffs is likely to be similarly passed through to consumers,” found the researchers, which analysed price data from the bureau of Labour Statistics on imports from China.
The impact of the trade war between the US and China can be summarized by a comment last week from Stanley Black & Decker CEO James Loree.
“So it’s been a great 20 years of shareholder value creation,” he said in a presentation with analysts at an industry conference. “But last year, not so great.”
The industrial-tools-and-hardware company took a $370 million hit from US-imposed tariffs, foreign-exchange headwinds, and cost inflation in 2018, Loree said. The stock dropped 29%.
Stanley Black & Decker’s CFO said during the company’s first-quarter conference call that its tools and storage segment was hit from a similar mix of currency headwinds, tariffs, and commodity inflation.
And in an interview with The Wall Street Journal earlier this month, Stanley Black & Decker said it planned to move production of its Craftsman wrenches back to the US from China as tariffs have raised the cost of imports.
“If we knew that the tariffs were going to be permanent, we would make sweeping changes to the supply chain,” Loree told the outlet.
The company’s experience in managing the US-China trade war is emblematic of a broader set of difficulties companies across sectors — from retail to technology — face as retaliatory rhetoric has ratcheted up this month.
Trade talks between Beijing and Washington have all but stalled. The US government’s Huawei ban exacerbated tensions and sparked worries of an all-out technology ” cold war.”
Flores himself provides a deep analysis on these very issues that MUST be seen in the below video.