referring to Remarking on the latest Ifo index numbers, UniCredit's Chief German Economist Andreas Rees said that companies were in "wait, see and hope" mode. "They wait and see whether U.S. President Trump imposes car tariffs and extends tariffs on Chinese goods. Economist Brzeski said in an export-oriented economy like Germany's — in which the U.S. is still the largest export destination — the prospects of more complicated trade are creating concern. "For now, the German economy clearly shows sign of fear but does not feel it. He noted that simulations showed that the German economy would, not surprisingly, be hit by a fully-fledged trade war, somewhere in the range of 0.1 and 0.4 percent of its annual gross domestic product (GDP).
collected by :Donald Luther
China cuts taxes to protect its economy from the trade war
China is looking for new ways to pump up its slowing economy as a trade war with the United States escalates. Related: China is unleashing more than $100 billion into its economyChina has accused the United States of starting a trade war by imposing tariffs on billions of dollars of its exports. Monday's announcement is the latest in a series of steps China has taken to try and perk up its economy. Related: The US-China trade war will spill into other Asian economiesShifting policyAnalysts said the government's move on Monday showed it doesn't want the central bank to do all the heavy lifting. Intensifying trade clashThe Trump administration and China this month imposed tariffs of 25% on $34 billion of each other's exports.Trump's trade war boosts the economy — before it bites
as informed in Economists warn that Trump's trade war sped up U.S. exports in the second quarter as China and other countries rushed to snap up American soybeans and other products ahead of impending tariffs, lifting growth in ways likely to be reversed in the coming months. Economists across Wall Street expect the second quarter growth number, out Friday at 8:30 a.m., to be a blockbuster. Estimates range from around 4 percent to well over 5 percent, which could exceed the second quarter of 2014, when the economy grew 5.2 percent, the top rate of President Barack Obama's tenure. "The trade war would become significantly more costly if an all-out global trade war erupted and if global equity markets dropped in response," Goldman Sachs analysts wrote. The stock market thus far has largely shrugged off Trump's approach, selling off only slightly on negative trade news only to quickly recover lost ground.collected by :Donald Luther