Consumers begin to feel the pain of the war of commerce
Meanwhile, more than a year after the beginning of the US-China trade war, American consumers are largely protected from the negative effects of tariffs. But a big Wall Street investment bank says that this will change soon and that the data prove it.
The BofAML Consumer Confidence Indicator fell 1.7 points to 53.9 on negative trade news and subsequent market sales.
Bank of America Merrill Lynch US consumer confidence indicator for consumer sentiment has plunged 1.7 points to 53.9 since mid-July. In a customer statement, the bank's Global Research team writes: "The upsurge of consumer confidence seems to be closely linked to the US-Chinese trade war by negative headlines and the financial markets' response to this trade war."
The Trade War escalates [AtthebeginningofthemonthPresidentTrumpshockedthefinancialmarketswhenheintroducedanewroundofChineseimportsofaround$300billionaimedprimarilyatconsumergoodsandexpectedtocomeintoeffectonSeptember1stLaterheannouncedplanstopostponetariffsonselectedconsumerstaplesuntilmid-December
Given the recent tightening of US-Beijing trade tensions, President Trump announced on Friday even higher tariffs on most Chinese imports in response to China In a late Friday afternoon tweet, President Trump said the White House would increase tariffs on products $ 300 billion increase from 10% to 15%. In addition, the US will increase its existing $ 250 billion in Chinese goods taxes from 25% from October 1 to 30%.
What does this mean for consumers?
"I think when these consumer tariffs come into effect From September 1st, you can actually find that consumers are withdrawing," said Joseph Song of Bank of America Merrill Lynch to The Final Round. "We expect growth at the turn of the year to slow below the trend. "
BofAML's Global Research Team found that only 26% of consumers surveyed endorsed the trade war against China.
" The continuing uncertainty shock from the trade war is starting to show in weaker global data and recession indicators are beginning to turn yellow flashing, "writes the BofAML team in a customer note. "As a result, sentiment may not recover and raise further concerns about an economic slowdown."
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Commerce consumers feel pain war