Is a global economic downturn likely after renewed US/China hostilities?

Experts fear 'tit-for-tat tariffs' could spark financial slump

Lauren Mason
clock • 4 min read

Renewed hostility between China and the US will likely accelerate a global economic downturn, following an unforeseen "turn for the worst" in the relations between the two giants, investment professionals have warned.

This comes following Google's announcement last week that it will restrict Chinese tech giant Huawei from accessing its software, following an executive order issued by US President Donald Trump. However, last Tuesday (21 May) US President Donald Trump's administration issued a licence that will temporarily allow US companies to keep doing business with Huawei for the next three months. Since then, the firm has hit back at Washington, warning that its "illegal actions" will negatively impact billions of customers. Investing amid ongoing global economic concerns These tenuous sancti...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Market Movers blog: American equities open higher as US claims the upper hand in Iran strikes

Market Movers blog: American equities open higher as US claims the upper hand in Iran strikes

Latest news and analysis

Investment Week
clock 26 June 2025 • 1 min read
Winterflood Business Services' Ben Centa: UK investors remain seated with seatbelts fastened

Winterflood Business Services' Ben Centa: UK investors remain seated with seatbelts fastened

Headlines have painted a picture of market chaos over the last couple of months. Panicked retail investors have apparently been crowding the exit rows.

Ben Centa
clock 25 June 2025 • 3 min read
Oil price dives as Israel-Iran 'ceasefire' rumours emerge

Oil price dives as Israel-Iran 'ceasefire' rumours emerge

Largest price falls since 2022

Patrick Brusnahan
clock 24 June 2025 • 1 min read
Trustpilot