Rising Trade Tensions
Rising tensions between global trading partners, including US and China tariffs, set the stage for broader challenges to the global trade regime, financial markets uncertainty, disruptions to manufacturing supply chains, and dampened economic growth.
  • SUMMARY
  • REPORTS

  • SECTOR COMMENT
    19 Aug 2019|Moody's Investors Service
    The US administration postponed some of its planned new tariffs on Chinese imports, but they remain credit negative for US companies within the affected industries.

    ISSUER COMMENT
    09 Aug 2019|Moody's Investors Service
    On 5 August 2019, the US designated China a currency manipulator. The move is likely to lead to a hardening in the trade dispute between the countries, and slower expansion in both economies, a credit negative for the sovereigns.
    Impact of tariffs on non-financial corporates
    SECTOR COMMENT
    02 Aug 2019|Moody's Investors Service
    The announcement of a new round of US tariffs on Chinese imports planned for September confirms our view that the two countries remain far apart in their expectations and objectives, and that a significant trade deal is not likely this year. The risk of a further escalation of the trade dispute and more tariffs and investment restrictions also remains high.
    SECTOR COMMENT
    02 Aug 2019|Moody's Investors Service
    We believe that many potentially affected retailers, especially the larger names, have taken steps in recent years to diversify their supply chains, thus reducing reliance on China
    SECTOR COMMENT
    02 Aug 2019|Moody's Investors Service
    This latest round of tariffs ensures that all US goods imported from China will be hit with incremental tariffs.

    SECTOR COMMENT
    05 Aug 2019|Moody's Investors Service
    New tariffs on imports from China will be credit negative for toy companies Hasbro Inc. and Mattel Inc. With many key retailers managing with just in time inventory and only expanding shelf space for toys in November to accommodate holiday sales, a significant share of the manufacturers' annual toy sales will be exposed to the new tariffs.

    SECTOR IN-DEPTH
    16 Jul 2019|Moody's Investors Service
    In the latest installment of our Global Trade Monitor, we discuss how trade tensions have reversed emerging signs of stabilization in global growth. Further crystallization of trade risks could leave a lasting impact on the global economy.

    OUTLOOK
    06 Jun 2019|Moody's Investors Service
    Recent escalation in US-China tensions has clouded the global economic outlook, and risks of a sharper slowdown have risen. In the event of a significant global deceleration, advanced industrial G-20 economies have limited monetary and fiscal policy space for stimulating global aggregate demand.