“The tariffs expected Thursday will be the most significant to date from a President who campaigned on a promise to correct the US’ global trade imbalance, particularly with China, and to revitalize US manufacturing,” according to CNN. U.S. exporters who rely on the Chinese market are nervous. And a retaliation with restrictions on U.,S. companies could devastate U.S. companies.
Although the chance of a full on trade war is still small, friction is expected to rise as the U.S. imposed more trade tariffs on Chinese products.
As uncertainty over the trade wars intensifies, investors are looking at safe haven investments such as treasury bonds. For example, the iShares 7-10 Year Treasury Bond (IEF) saw $222.37 million net inflows over the past month according to ETF Data.
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