#TradeWarEases What good news! The easing of trade tensions, especially between major players like the US and China, generally has a positive impact on the global economy.1Here is an analysis of what this may mean:

Positive impacts:

Reduced costs for businesses and consumers: Lower tariffs directly translate into reduced costs for companies that import products. This can lead to lower prices for consumers, as this cost savings is potentially passed on.

Increased trade flows: As tariffs decrease, trade becomes more attractive, leading to an increase in the volume of goods and services exchanged between countries. This can boost economic activity in both exporting and importing countries.

Greater business confidence: The easing of trade wars reduces uncertainty for businesses, encouraging investment and expansion. Companies are more likely to invest when they have a clearer view of future trade relations.

More stable global economy: Trade wars create instability and can negatively impact global economic growth. De-escalation helps stabilize markets and reduce fears of a major economic recession.

Better functioning supply chains: High tariffs can disrupt supply chains, forcing companies to find alternative, potentially less efficient sources. Easing tariffs can lead to a smoother flow of goods and more efficient supply chains.

Market recovery: as we are already seeing, news about the easing of the trade war generally leads to positive reactions in financial markets, with rising stock prices.