blog

Latest from the Quantamize Blog

Report from the Front Lines: An Update of the State of Each Front in the Trade War

May 17, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • President Trump vowed to change the United States' trading relationships around the world and on that front he is working diligently 
  • The effort is still a work in progress and the jury is still out on the chance of achieving his goals
  • There are battle fronts all around the globe and we take a look at where each stands today

 

The Eastern Front

  • China has stoked the most ire of President Trump and it is there he has focused his greatest fire
  • The US slapped 25% tariffs on $200 billion in Chinese imports last Friday after a lack of progress in talks
  • China introduced its own tariffs on $60 billion of US exports to China at the start of this week
  • During the week US officials insisted there would be further talks in China in the near future, before a potential meeting at the G-20 Summit in June
  • China said it had no idea what talks the US was talking about, there was nothing planned
  • Then China went further today, telling the US it can stay home, saying that without meaningful moves from the US, there is no reason for anyone to come to China 
  • China made its frustration clear, accusing US of "tricks to disrupt the atmosphere"
  • Read more in our recent post: Sabers Rattle and Tariffs Fly - The latest in the US-China trade fight

The Other Eastern Front

  • President Trump has complained about the trade deficit with Japan, threatening 25% tariffs on auto imports from Japan
  • Today it was officially announced the US will delay for another 6 months any tariffs on Japanese imports

The Western Front

  • President Trump has complained about auto imports from Europe and the trade imbalance there
  • He has previously threatened 25% tariffs on the region
  • Today it was officially announced the US will delay for another 6 months any tariffs on European imports

The Northern Front

  • President Trump slapped 10% and 25% tariffs on metal imports from Canada a year ago, citing national security reasons (cue laughter)
  • The US has been trying to craft a new trade deal, scrapping NAFTA and updating it with the USMCA (US Mexico Canada Agreement)
  • It is being reported today that the US is about to remove the tariffs on Canadian imports as it prepares to sign a new trade deal

The Southern Front

  • Much like Canada, President Trump slapped 10% and 25% tariffs on metal imports from Mexico a year ago, citing national security reasons (cue more laughter)
  • The US has been trying to craft a new trade deal, scrapping NAFTA and updating it with the USMCA (US Mexico Canada Agreement)
  • It is being reported today that the US is about to remove the tariffs on Mexican imports as it prepares to sign a new trade deal
  • A challenge for both the Northern and Southern fronts of this war is getting any new deal passed through Congress, something that seems very difficult at this point

  •  

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS