International Economic Law Project Report topic: us&china trade war

EFFECTS


Stock market
In­vestor un­cer­tainty due to the trade war has caused tur­bu­lence in the stock market.
The Dow Jones In­dus­trial Av­er­age fell 724 points, or 2.9%, after the tar­iffs were an­nounced due to con­cerns over a trade war. Cor­po­ra­tions that traded with China, such as Cater­pil­lar Inc. and Boe­ing, suf­fered large losses in their stock price
On De­cem­ber 4, 2018, the Dow Jones In­dus­trial Av­er­age logged its worst day in nearly a month as it de­clined nearly 600 points, to which some argue is in part due to the trade war. On De­cem­ber 26, the Dow Jones recorded a rise of 1000 points after, ac­cord­ing to Reuters, the pub­li­ca­tion of a re­port that doc­u­mented strong hol­i­day sales, al­though the major in­dexes were still down more than 10% through the month of De­cem­ber 2018 amid the trade war.
On Au­gust 14, 2019, the Dow dropped 800 points, partly caused by in­creas­ing trade ten­sions be­tween the U.S. and China. Nine days later, on Au­gust 23, the Dow dropped 623 points on the day that Trump in­for­mally or­dered Amer­i­can com­pa­nies to im­me­di­ately seek al­ter­na­tives to doing busi­ness in China. By the end of 2019, stock mar­kets reached record highs, hav­ing risen due to the agree­ment be­tween the United States and China to sign the first phase of a trade deal.


Domestic politics
An­a­lysts spec­u­lated that the trade war could af­fect the 2020 United States pres­i­den­tial elec­tion, as tar­iffs have neg­a­tively af­fected farm­ers, an im­por­tant con­stituency for Trump. An­a­lysts also spec­u­lated on how the trade war af­fected Xi Jin­ping in re­la­tion to the do­mes­tic pres­sures that he faced


Globally
The trade war has hurt the European economy, particularly Germany, even though trade relations between Germany and China and between Germany and the U.S. remain good. Germany and the EU have had high levels of trade with China, and the German government and public want to maintain these trade ties. The Canadian economy has seen negative effects as well. Like the U.S., Britain, Germany, Japan, and South Korea were all showing "a weak manufacturing performance" as of 2019.
Some countries have benefited economically from the trade war, at least in some sectors, due to increasing exports to the United States and China to fill the gaps left by decreasing trade between these two economies. Beneficiaries include Vietnam, Chile, Malaysia, and Argentina.