Trade is expected to be a hot issue for a few more decades, as relationships between various countries keeps shifting.
Such a prediction comes just as China and the U.S. continue to send sparks to each other in the trade war affecting global markets. Donald Trump, President of the U.S. has threatened to increase tariffs on Chinese goods last week, and China is expected to retaliate.
These developments, when there was speculation that the 2 countries were close to coming to an agreement, have shocked global markets. JP Morgan’s expert James Sullivan says we are moving towards a world increasingly accessible, and trade negotiations must be taken more seriously. Investors must expect more trade wars ahead.
He said trade conversations will now be the backdrop for global markets for 10-20 years, while the many powerful countries and their economies iron out all their differences and reorganize the global structure.
On Friday, the U.S. raised tariffs on Chinese goods worth $200 billion to 25%, and China responded saying it would retaliate, but is yet specify how.
Shares have generally progressed since, so most major global markets seem to have shrugged that off.
Larry Kudlow, Economic Advisor for the White House said the Presidents of U.S. and China may meet again at the G-20 summit to be held in Japan in June, although there aren’t any definite plans.
Kudlow added that China will need to concede to strong provisions of enforcement to eventually strike a deal, with the pain point being the reluctance of Beijing to legalize changes agreed upon.
Beijing responded in the People’s Daily saying China isn’t at any cost going to forfeit the respect of the country, and it shouldn’t be expected that the nation will ingest bitter fruit intended to harm China’s core interests. The Communist Party of China controls the publication.