Trade War Effects: Chinese Exports Down And EU Reduces Growth Estimates
- According to The Wall Street Journal, Chinese exports fell 1.3 percent from June 2018 to June 2019 after rising 1.1 percent the previous month. Imports fell 7.3 percent in June versus an 8.5 percent drop in May. The decline came after the United States placed tariffs on more than $200 billion in goods sent from China. Exports to United States from China for the first six months of 2019 were 8.1 percent lower than during the first half of 2018. The value of imports to China at that time fell 29.9 percent.
- According to The Associated Press, the European Union has cut its economic growth forecasts due to increasing concerns about world trade and trade with the United States specifically. The Eurozone economy is now expected to expand only 1.4 percent in 2020, down from a previous estimate of 1.5 percent. Pierre Moscovici, European commissioner in charge of economic affairs, said one of the reasons for the degrade is that the manufacturing sector has been hit by “growing trade tensions.”