U.S. announces new Tariffs – Expert comment from S.M. Lodha, Indian Industrialist and Chairman of Western Thermal Group

Regarding the news that the U.S. has announced new tariffs, S.M. Lodha, an Indian Industrialist with interests in Iron & Steel, and Chairman of Western Thermal Group, has said:

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“With the U.S. slapping on another $16bn tariff on China’s imports, there will be unrest amongst China’s stock market with fears of escalations of the trade war, with current imports affected being mainly industrial products . However, in light of these sanctions, there is no doubt China has shown resilience, with a rise in exports in July from 11.2% to 12.2% up from June and domestic demand remaining strong and China’s economy holding firm.

 

Similar tariffs have been held responsible for the weakening of the construction industry in Germany, declining by 3.2% Month on Month earlier this year along with inflation in the UK construction sector. However, this doesn’t mean a long-term standstill in both investment and production, while the imposed trade tariffs may mean constraints against output, it will also pressure manufacturers to invest more in their production capacities which should positively affect the industry in the long run.

 

It is still early days, and whether affected countries such as China will retaliate further remains to be seen, but the UK construction industry remains positive, with the rate of new order growth and job creation also expanding at a strong rate, further signalling positivity amongst construction companies. ”