Trump kept bragging about his economy raise in 2018, he started a serious economy war with China due to his arrogance. He raised the tariff on Chinese goods and Chinese did vice versa. It has become clear from present situation that everybody loses in economic and trade war like USA and China. China’s losing fast these days but economists say they will rise in second half of 2019, America is losing slowly in comparison but signs say ‘US economy will be cool of in second half and is about to cause some serious pain for US’, according to growing consensus for wall street economists. It is to be noted that the combination of fading tax cut stimulus, taxes, and stiff financial conditions will all contribute to a slower pace of economic growth. Growth seems to be slow significantly in 2019 from recent pace of 3.5%+ to about 1.75% of potential. There are three reasons of economy cool of given by economists Ethan Harris and Aditya Bhave in a report on Friday.
1-Intensification of trade war is causing serious problems for America since they sought to avoid tariff on widely used consumer’s products and dispensed products without an easy substituent.
2- Economy war is seriously affecting US’s consumer investors’ confidence as the stimulus fades due to tax cuts and government spending boosts.
3-US have limited room for loosening policy on both monetary and fiscal sides while China is using its full arsenal of stimulus tools.
Exact possible effects of war can only are predicted if partial shutdown could end.
