President Donald Trump is not eager to back down on the US-China Trade War and said would increase tariff for another $300 billion ‘if necessary.’
In an article published by CNBC, it is stated that Trump is also looking into increasing tariff for Mexican goods due to Mexico’s deal with China to import Chinese products.
Meanwhile, good news from the US Federal Reserve data shows is a huge bounce back from last year’s $104.34 trillion, approximately 4.5 per cent increase. In addition to this, US Household debt also declined by 2.3%, from last year’s 2.8%.
The increase included a rise in the corporate equity value held by American households.
In an article published by Bloomberg, data shows that one factor of this wealth increase is the recovery of the US Stock Market indicating the trivial cooling off of the trade war. It can be recalled that President Donald Trump raised trade interest in Chinese goods. Trump ordered a $200 billion tariff for Chinese goods, creating tension between China. In turn, the Chinese government also raised its tariff for US goods.
Household net worth reflects on the value of assets including homes, bank accounts and stocks, eliminating debts and mortgages from this amount. Inflation rate published on April appears to be steady with a flat 2.0%, however, the next data would pop up this coming June 12, 2019.
While this is referred to as good news, businesses still suffer and racking up debt for almost 2.3%. This also has something to do with the trade war, making consumers suffer for the additional charges on the goods from China and even Mexico.
When the increase of another $300 billion happens, inflation can also rise, following the demand for products overseas. China is also not backing down from the tariff increase by the United States, which means trade war will stay for months from now.