Economics

Deal or No Deal, Trump’s Trade War With China Has Scarred the Global Economy

  • China export orders slump as Europe manufacturing weakens
  • Trade war may have lasting world economic damage: BoA analyst
There could be a U.S. recession as early as next year, says Julius Baer’s Mark Matthews.(Source: Bloomberg)
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A deal between the U.S. and China to drop tariffs couldn’t come soon enough for a global economy already showing strains from the trade war.

Economists predicted that eye-for-an-eye tariffs by the U.S. and China could eat into world growth, and there’s evidence that’s happening. Export orders in China slumped last month to the lowest level in a decade amid signs of a deepening factory downturn in the world’s second biggest economy. In the euro area, a key gauge of manufacturing activity has dropped to a level consistent with contraction.