The trade war between the US and China prompted by Trump’s protectionist policies is starting to impact results of major US companies, according to a report published by CNBC.
Apple saw its shares plummet last week after it lowered its estimated first-quarter revenue, attributing the change to the trade war and a slowing Chinese economy, leading to a drop in demand for its famous phones and gadgets.
“We did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple CEO Cook told shareholders last week.
Chinese retail sales grew at 8.1 percent in November, the slowest rate of growth for 15 years, according to Coresight Research, per CNBC. Exports growth dropped like a stone from 15.5 percent in October to just 5.4 percent in November.
Major US retailers have also felt the crunch – Target has warned of price rises if the situation is not resolved and even sales of luxury cosmetics, which seemed impervious to the slowdown in the latest sets of results, have slowed, down from 7.8 percent in July to 4.4 percent in November, according to Jefferies analysts, per CNBC.