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Morning Brief: Fear of Prolonged U.S.-China Trade War Rattles Markets Fear of Prolonged U.S.-China Trade Wa...
Here is today’s Foreign Policy brief: The ongoing U.S.-China trade dispute weighs on markets, President Nicolás Maduro calls for legislative elections in Venezuela, and Austrian Chancellor Sebastian Kurz distances himself from the far-right.
Fears of a protracted trade dispute between the United States and China hit financial markets on Monday. Worries that the trade war will last longer have weighed on technology companies in particular. Apple shares fell by 3.3 percent amid a warning that retaliatory tariffs will drive up prices. As expected, shares of companies supplying the Chinese firm Huawei, which the United States blacklisted last week, also fell.
For its part, the U.S. Federal Reserve said Monday that the dispute “would have to go on for some time” to significantly damage the U.S. economy. But some financial analysts warned that if trade talks between the countries collapse—and tariffs remain high—the global economy could move toward recession.
Beyond trade. The provocations aren’t limited to the economy. The U.S. military said one of its warships had passed through a disputed area in the South China Sea, angering China. And at the U.N. health assembly on Monday, the United States supported calls for Taiwan—blocked by China in recent years—to get a seat at the table.
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