Coronavirus likely to affect timing of phase one trade deal
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China and the United States will both reduce tariffs on exports Friday as part of phase one of the new trade deal. China has promised to boost purchases of U.S. goods and services by $200 billion over the next two years.
But the Trump administration’s chief economic adviser, Larry Kudlow, told Fox Business last week that the “export boom from the trade deal will take longer because of the Chinese virus.”
“We’re tracking how quickly people are going back to work after the shutdown last week and the evidence so far is that hardly anyone is,” said Mark Williams, chief Asia economist at Capital Economics.
Phase one of the trade deal was supposed to reopen the Chinese market to American farmers, but they’re still not sending produce to China because neither demand nor buying power are not there. That’s especially bad news for American soy farmers anxious to get their produce back into the Chinese market.
Many experts have been comparing the COVID-19 coronavirus outbreak to the SARS epidemic in 2003. But Ruomeng Cui, assistant professor of information systems and operations management at Emory University, said while SARS isn’t a bad reference point, this seems vastly different.
“I would predict the impact of coronavirus on the Chinese economy to be broader and more profound, compared to SARS,” she said.
More than 1,300 people have died as a result of COVID-19, which was first identified in December in Wuhan, the capital of China’s Hubei province.
COVID-19 Economy FAQs
How many people are flying? Has traveled picked up?
Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.
How are Americans feeling about their finances?
Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.
Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.
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