The trade war is the most significant issue facing global supply chains. Any interested parties that expected a respite after the Democrats won the House in the 2018 midterms, have for the previous three months have been left with little in the way of progress. In the 1960s, Congress delegated its authority to impose restrictions on foreign trade, which under the current political environment it is attempting to reclaim. Several bills were introduced in 2018 to strengthen Congress’ constitutional role in trade policy, but none were passed. It is uncertain if these legislations will gather more support under the newly elected Congress. Even if they did, the President would most certainly veto any enacted laws in order to maintain the executive branch’s unilateral power in this domain.
Ironically, if there is one issue where House leader Nancy Pelosi and President Donald Trump can agree on, it is tightening the screws on China. Pelosi and many other Democrats have been vocal about the economic ramifications of China supposedly pushing unfair trade practices and subsidizing Chinese companies to gain an advantage over American firms. All in all, this means that global corporations have more tumult and uncertainty coming their way as the trade war continues.
Where do the two countries stand?
The current duties on China imports are set at 10% and were…