Consumers are really starting to worry about the trade war
U.S.
consumers are getting increasingly anxious about the trade war with China
despite a recent thaw in the tensions ahead of the trade talks next month.The
University of Michigan’s Surveys of Consumers showed in September that a
near-record number of consumers cited trade policies as a negative factor
weighing on the economy.“Trade policies have had the greatest negative impact
on consumers, with a near record one-third of all consumers negatively
mentioning trade policies in September when asked to explain in their own words
the factors underlying their economic expectations,” Richard Curtin, chief
economist of the Surveys of Consumers, said in a statement.The result came as
the U.S. and China are slated to resume trade talks on Oct. 10 in Washington.
Tensions have somewhat eased ahead of the negotiations as China confirmed the
country had purchased a “considerable” amount of U.S. soybeans and pork
products. President Donald Trump had also delayed some tariffs by two weeks at
China’s request.Still, the two economic superpowers have many structural issues
they have yet to sort out. White House trade advisor Peter Navarro previously
said these issues include cyber intrusion into U.S. business networks, forced
technology transfer, intellectual property theft and currency manipulation.An
index of consumer confidence rose to 93.2 in September from 89.8 in August,
according to the University of Michigan. “Despite the high levels of
confidence, consumers have also expressed rising levels of economic
uncertainty,” Curtin said. “Some of these concerns are rooted in partisanship,
some due to conditions in the global economy (Brexit, Iran, Saudi Arabia,
China), and some are tied to domestic economic policies.”