Despite tax cuts passed last year, US business investment has plunged amid trade policy uncertainty.

Other factors are slowing the US economy, but trade war is one of the big ones. Big corporations have postponed capital spending plans until they know the rules of the game for international supply chains. As a result, orders for new nondefense capital goods orders have fallen year-on-year. It should have been obvious that this would happen; I warned repeatedly CapEx would suffer.

Read more: Why US-China trade deal is coming, in two charts

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