The trade war between China and the United States is negatively impacting the tech industry. Technology is the bread and butter of contemporary times, and raised tariffs and sanctions on industrial products from selective countries is resulting in what can be called ‘tech recession.
Amazon has become one of the sufferers of this ongoing trade war. The sellers from China will have to pay more with the rise in tariffs. The seller will have to cut down the price and bear the brunt himself. Or will have to shift the burden towards its customer. The third option will prompt Amazon to share the burden and cut down its share.
trade war and decelerating economy
China is one of the leading importers of tech-accessories and hardware products from the U.S based companies such as Intel. As China has retaliated by raising the taxes on products from the U.S, the tech industry will have to bear an extra bit of pressure.
Donald Trump accused China of retreating from its initial stands on trade agreements. This hypothesis of his forced the U.S to slap 25 percent of tariffs on products worth $200 billion from China into the United States.
The U.S is planning to further expand the intensity of trade war. The U.S administration hint about another 25% tariffs on products worth $325 imported from China.
The Chinese leading tech-brand, Huawei, is supposed to incur a loss of $30 billion, this year. Again it’s the trade war which led to decelerating growth of a leading tech-based brand.
The US-Iran tensions have further aggravated the economic crisis and upheaval. The global leaders will meet in the upcoming G-20 summit to mend ways towards reconciliation.
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