US trade war with China

Jaysen

Founder, TCLA
Staff member
TCLA Moderator
Gold Member
Premium Member
M&A Bootcamp
  • Feb 17, 2018
    4,717
    8,627
    Good article from the BBC: "Who loses out in the US-China trade war?": https://www.bbc.co.uk/news/business-48256535

    _106948579_us_china_timeline_trade_640-nc.png
     

    Alice G

    Legendary Member
    Future Trainee
    Forum Team
    M&A Bootcamp
    Nov 26, 2018
    1,731
    4,184
    @D.Cole my story will be live as of tomorrow and I struggled to write up about impacts myself a bit really! But stocks slumped pretty badly yesterday in light of China’s announcement to retaliate with their own tariffs on American goods. Analysts have been quick to opine that market volatility will last a few weeks until talks become closer to a resolution and some have warned about a possible recession. Market volatility and uncertainty are the antithesis to corporate activity. Businesses do not want to invest and engage in deals when the future is so uncertain and when projections of success are difficult to ascertain.
    Some businesses will also have to absorb the costs of the tariffs on goods. Many will put the burden into their consumers but some businesses will probably have to share some portion of the burden if they hope to still be profitable. I remember Coca Cola being an example of a brand with such strength that they can pass the burden to the consumer but others do not have the same market strength and consumer loyalty.
    For law firms, though M&A activity will probably be down, it is possible to see opportunity out of this. Some businesses will look to move their supply chains and relocate or seek to source their materials from elsewhere which will require the help of lawyers. Lawyers may we’ll be instructed to do due diligence to look at viable ways that businesses can mitigate the impact of the trade war for this own financial benefit and stability.
    This is quite brief and I hope it is clear but this might give you a bit of food for thought. Sorry it’s later than expected!! I ended up rewriting my entire story because of yesterday’s developments on this topic :)
     

    About Us

    The Corporate Law Academy (TCLA) was founded in 2018 because we wanted to improve the legal journey. We wanted more transparency and better training. We wanted to form a community of aspiring lawyers who care about becoming the best version of themselves.

    Newsletter

    Discover the most relevant business news, access our law firm analysis, and receive our best advice for aspiring lawyers.