According to a bulletin from the Bank of Finland, global gross domestic product (GDP) growth is expected to slow down by 0.7 percentage points as a result of the US-China trade war, which began in March 2018 when the US introduced sanctions on Chinese steel imports at 25%.
The global GDP is not the only victim in the war between President Trump and the People’s Republic of China. Global investments and manufacturing purchasing indices have also suffered from the increase of tariffs, which has led to volatility in share prices worldwide.
Other countries have also been affected, with UK firms registering significant collateral damages. According to a study by UK-based financial institution Stenn, British firms believe that the trade war will end up costing them £3m each on average, creating losses of £130.4bn across the country.
As the US elections are fast approaching, many people wonder what will happen to the trade war, in particular with regards to shipping freight, in case of a second Trump presidency.
US-China trade war: the story so far
Greater freight rate volatility was one of the most immediate results of the trade war. According to Drewry senior manager for container research Simon Heaney, transpacific prices surged throughout 2018 as cargo owners tried to move shipments before deadlines, while countries such as Vietnam saw significant price increases in the US market…
