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Asia stocks in dark on trade, seek enlightenment from Trump

Credit: Reuters- Published 3 weeks ago
Asian share markets edged higher on Tuesday and Europe looked set to follow as investors awaited a speech by President Donald Trump on U.S. trade policy and on news he will likely delay a decision on whether to slap tariffs on European autos.
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Credit: The Street
Published 3 weeks ago -  01:39
What Is a Trade War?
A trade war is when two or more countries put tariffs on each other's goods. If that's hard to understand, think about it this way: Imagine the two countries as dueling siblings. One sibling hits the other. The one who got hit, hits back and says 'he or she started it.' That's an over simplification, but the point is that it's a political tit-for-tat. Most economists agree that the global economy is better off with free trade than without it. So what would prompt a trade war? A number of offenses could do the trick. Recently, Trump won the presidency and wanted to keep laborers happy. So he implemented tariffs on Chinese goods imported to the U.S. He taxed them, reducing demand for them. But the higher price a buyer must pay for those Chinese goods means that American makers of those goods can raise prices. This is, theoretically, a positive for American manufacturers of goods like steel and clothing materials. Those companies can hire more workers, which is part of Trump's plan. But China's not going to just watch this happen to its manufacturers. Hence, a trade war. Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM Subscribe to our Youtube Channel for more videos: Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

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