ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Trade war

Trade war opens commodity floodgates

Tariffs and China slowdown combine to shrink demand

Growth in Chinese demand for steel is flagging as consumers buy fewer cars and appliances.   © Kyodo

TOKYO -- The U.S.-China trade war is adding to excess supply for products from steel to soybeans, with export-discouraging tariffs in the U.S. and weakened equipment investment in China causing stockpiles to build up and prices to deflate.

If Washington and Beijing fail to break their trade deadlock by the March 1 deadline, a new wave of tariffs will automatically kick in, heightening the risk to the global economy in a parallel to how protectionist policies drove down prices in the 1930s and exacerbated the Great Depression.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more