This will happen if the American and Chinese negotiators fail to reach an agreement by March 1, and Donald Trump’s administration will continue to impose duties, charging them with all Chinese exports
Trump and the chairman of the People’s Republic of China, Si Jinping, agreed to begin negotiations at the G20 summit in Argentina in early December. At the same time, the White House agreed to postpone for 90 days the imposition of duties on Chinese exports in the amount of another 200 billion dollars.
China has agreed to increase its purchases of soybeans in the US, to lower duties on American cars, and also to purchase large quantities of liquefied natural gas, but the key issue – the theft of technology and intellectual property – has failed to achieve progress in two months.
“If a trade deal is not concluded, and the United States will impose a 25% duty on all Chinese imports, after a short period of time, the Chinese economy will slow down to 4.5-5%. In Europe and in many emerging markets, there will likely be a recession of varying degrees of severity, while the US economy will also be at risk, “says BCS Global Markets analyst.
Global slowdown in China in the world will crumble global demand for commodities. Oil prices may fall to $ 30 a barrel, according to BCC estimates.