In its trade policy agenda, Trump suggested that the U.S. is not bound by World Trade Organization decisions, meaning it can unilaterally impose higher taxes and other restrictions on Chinese goods if they flood the U.S. market.
If this happens, China is likely to retaliate to protect its economy and spark a war between the two.
Chinese President Xi Jinping warned in January that “no one will emerge as a winner in a trade war”.
Problems in global trade have direct repercussions on global businesses. This is why uncertainty regarding the future of trade and tax policies in the U.S. was the second most important external risk for CFOs.
