Why The US Tech Industry May Soon Face A Crisis
Tensions between the US and China have escalated further within the span of a few days. Amidst reports that President Trump is looking to impose $200 billion more in Chinese imports as early as next week, the world's two largest economies are both on the offense.
Looking at the issue from a pure dollar perspective, one may argue China has more to lose from a strained relationship with the US. The US will be able to put tariffs on up to $500 billion more in Chinese imports, but China's total imports from the US only amount to $150 billion. Additionally, the US stock market reached record highs this year, while China's stock market officially entered a bear market with losses over 20 percent.
But the US has a lot more at stake in the near future. The crown jewel of the markets today, the technology industry, will be most disrupted if a trade dispute goes awry.