01 May Question: Trump’s imposition of $200 billion tariff in the Fall of 2018 (taxes on imports to the US Market)…
Trump’s imposition of $200 billion tariff in the Fall of 2018 (taxes on imports to the US Market) on Chinese exports to the US has caused a global tension in financial markets and related business activities. In retaliation of Trump’s tariff, China also imposed almost similar amount of tariff on US exports to China. But in response to this trade war between the US and China, the stock price indices of the Wall Street in NYC did not respond negatively until late December 2018. Actually, given the robust economic growth and very low unemployment rate, the stock prices continued to surge with a very little volatility in recent weeks. Given this circumstance of the market, briefly explain in a few sentences who would bear the most burden of this trade war (Chinese exporters or consumers or both; vs American consumers and producers or both? Or a wash?). 2 pts
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