The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Currency wars, widespread protectionism and billion-dollar losses could arise if the U.S. and China fail to settle their trade differences before March 1, the UN warned in a new study.
Published by the UN Conference on Trade and Development (UNCTAD) on Monday, the report said that while some countries would see a surge in exports, negative global effects were likely to dominate.
China and the U.S. have been embroiled in a trade dispute since early 2018. In September, the U.S. added 10 percent tariffs on around $200 billion of Chinese imports, and it planned to increase those rates to 25 percent in January. However, both parties agreed to freeze these increases until March 1 while they engaged in talks.
According to the UN report, continuing or hiking tariffs between the two superpowers would have an unavoidable impact on the "still fragile" global economy, including disturbances in commodities, financial markets and currencies.
"One major concern is the risk that trade tensions could spiral into currency wars, making dollar-denominated debt more difficult to service," UNCTAD's report said. "Another worry is that more countries may join the fray and that protectionist policies could escalate to a global level."
A currency war occurs when nations deliberately depreciate the value of their domestic currencies in order to stimulate their economies.
The report's authors noted that protectionist policies generally hurt weaker economies the most, while tit-for-tat moves of the trade giants would have a domino effect beyond their domestic markets.
"Tariff increases penalize not only the assembler of a product, but also suppliers along the chain," the report noted.
Chinese exports affected by U.S. tariffs would likely hit east Asian value chains the hardest, UNCTAD said, with an estimated contraction of around $160 billion.
Of the total $250 billion in Chinese products currently subject to U.S. tariffs, around 82 percent will instead be exported by firms in other countries, the study estimated. While 12 percent was estimated to be retained by Chinese companies, only 6 percent would be captured by domestic U.S. firms.
Meanwhile, of the U.S. exports subject to Chinese tariffs, about 85 percent would be captured by outside markets, UNCTAD estimated. The report said U.S. firms would likely retain less than 10 percent of those exports, while Chinese businesses would capture around 5 percent.
The countries expected to benefit the most were those that had the economic capacity to replace U.S. and Chinese firms. EU exports would capture $70 billion of U.S.-China bilateral trade, the report estimated, while Japan, Mexico and Canada would each gain around $20 billion.
The countries expected to see the highest percentage increase to their current total exports were Australia, Brazil and India.
"Because of the size of their economies, the tariffs imposed by Unites States and China will inevitably have significant repercussions on international trade," Pamela Coke-Hamilton, head of UNCTAD's international trade division, said at a press conference on Monday.
"While bilateral tariffs are not very effective in protecting domestic firms, they are valid instruments to limit trade from the targeted country. The effect of U.S.-China tariffs would be mainly distortionary. U.S.-China bilateral trade will decline and be replaced by trade originating in other countries."