Through the first few months of 2018, the global economy has been extremely turbulent. While 2017 was a strong year of prosperity with consistent and strong growth in stocks all over the world, 2018 has continued to see a lot of volatility as companies and global economies seem much less reliable and consistent. One of the main factors that is continuing to influence the global economy this year are all of the stories taking place in regards to challenges with international trade.
According to Vox.com, some of the biggest stories in the international trade industry have taken place between the United States and China. Over the past few months, the United States and China have both threatened a variety of different tariffs and other fees that will be imposed on Imports. Companies that operate in either one of these countries have continued to show concern about how this could impact their organizations. This has led to some of the most wild swings in the stock market in years. While the tariffs and international trade concerns will be outstanding for some time, and now it appears that the threat of the tariffs could be delayed for at least some time.
Over the past week, the United States announced that there will be an extension of the existing tariff exemptions. This exemption will provide an incentive to about five of the top US trade partners and will give everyone time to figure out a better deal. This could be beneficial given the size of the tariffs, which are considered problematic for many different organizations.
Overall, this is a huge win for the overall economy as well as those that participate in the steel and aluminum Industries. President Trump had been suggesting that we impose a 25% tariff on all steel imports and a 10% import on all aluminum imports. While the intent of this was to encourage more companies to purchase American steel and aluminum, some believe that this could have a disastrous effect on a variety of different international companies. Furthermore, this could have a trickle-down effect and make a wide variety of different consumer goods and real estate more expensive. All parties involved will work to find a resolution to the concern over the next 6 months.