Photo: Spencer Platt, Getty Images Agence France-Presse
Apple would not be the only american company to wipe away more from the shock of the escalation of tariffs and trade wars between the two biggest economies of the planet.
The belligerent speech, and the customs tariffs of the last few months of Donald Trump against China seemed to contradict the rule that trading partners do not go to war. The growing impact of his attacks on the american economy come to show off why.
The american giant of the electronics Apple published on Thursday its worst session in the Stock market since 2013, with a fall of almost 10 % of the value of its action. Investors reacted to the announcement by the company, disappointing sales of the new version of its iPhone, particularly in the largest market of smartphones in the world, China, and in particular because of the impact on the chinese economy of trade sanctions imposed by the u.s. government. The markets reacted as to the idea (supported by own economic advisers Donald Trump) that Apple will not be the only american company to wipe away more from the shock of the escalation of tariffs and trade wars between the two biggest economies of the planet and all the uncertainty that this raises, at a time when one feels a little all over the shortness of the growth.
Economists say that these repercussions were hanging at the tip of the nose of the u.s. economy since Donald Trump began to hit rate trade a little bit of all of the world, but with a relentlessly particular about the manufacture of the world. In a global economy where value chains have never been as closely integrated, these rates are equivalent to taxes that hit almost everything that companies produce and what they consume. These shovelfuls of sand in the gears would inevitably end up by producing their work, even in an economy that is also heated to white by the tax cuts and deregulation as that of the United States.
This myriad of concrete connections that weaves the trade between the nations and that have an impact well concrete not only on the prosperity of enterprises, but also on the use and the mode of life of the population explains why the historians and many political leaders like to repeat that no two countries that trade together do not go to war.
You can probably find some exceptions and some will no doubt argue that the escalation of trade between the United States and China is still far from what we can call a real war. Donald Trump may claim that the sanctions are intended to force Beijing to abandon some unfair commercial practices, such as the rape of the intellectual property of foreign companies, but all his action borrows more and more to the logic of a new cold war to curb the ascent of china, particularly in the economic sectors of the future such as electric cars, green energy and the new generation of mobile telephony. But a major difference between the old cold war and its new version is that western economies and soviet co-existed essentially in parallel so that the us and chinese economies are inextricably linked, just as they are with other economies.
During this time, in Canada
More closely related to the american economy than any other, the canadian economy has made the expense, also, more of an attack on the front of a commercial since the arrival to the White House from its current occupant. All too aware of the vital importance for him to maintain the trade the more open and orderly as possible, Canada is reached, this fall, the terms of the negotiations especially strenuous, to save the essential of the free trade Agreement north american (NAFTA), of which he already had. He also took the opportunity last year to conclude, with ten other countries, a new version of the trans-pacific Partnership without the United States.
This last treaty has entered into force at the beginning of the year in Canada. As to the new Agreement, U.s.–Canada–Mexico (ACEUM), it has not yet been ratified and could not be before a certain time, judging by the extreme difficulty of enacting anything by the current u.s. Congress. The force of the economic growth could depend on this year in Canada of the ability of its businesses to seize these opportunities. This isn’t always flowing source, as we showed in 2018, the first year of another free trade agreement with the european Union, and which seem to have mostly benefited european companies until now.