President’s Trump’s trade war with China continues to elicit different views even as the trade talks continue in Shanghai. One of the biggest concerns was raised by some US manufacturing companies that recorded a statement saying that the war was just as harmful to them.
Four companies, CAT, 3M, Dow, and Honeywell, spoke up concerning Trump’s tariffs saying that the slowing China economy could mean bad news to US companies that trade in China. 3M vice president, Nicholas C. Gangestad said that they further expected organic growth in the country to reduce to mid-single digits, which is much less than they expected.
According to reports by the four companies, materials and manufacturing companies are expected to continue showing weakness due to the slowing market. This is after material companies tracked earnings that were less 5% of their expectations in the first quarter of 2019. 3M, which manufactures products for many industries, has also recorded a 0.80% fall in the second quarter with more expected to come due to the decline in demand for industrial products.
Gregory Peter Lewis, who is the senior vice president of Honeywell, said that the company is taking cautious measures seeing that both China and European economies are facing a slowdown. The uncertainty brought about by Brexit has continued to make the market unpredictable, and the new tariffs against China have only made the situation worse.
These reports come weeks after the International Monetary Fund, supported Trump’s move saying that China would face more losses than the US. According to the IMF, the tariffs imposed by President Trump have continued to increase pressure on the China economy that was already undergoing a slowdown. However, the IMF also warned President Trump against going on a full-on trade war with the Asian country.