FAST FIVE: Trade War Nightmare Causes Collapse In Demand For US Industrial Space, Says Cushman & Wakefield
Cushman & Wakefield's economists warned President Trump's trade war is unraveling complex supply chains around the world that have led to a slump in demand for industrial space.
Another possibility is companies may have overstocked before the implementation of tariffs in 2018.
To best visualize the global slowdown is YoY changes in global trade as measured by the IMF's Direction of Trade Statistics, courtesy of BMO's Ian Lyngern.
President Trump slapped 25% tariffs on $200 billion of Chinese goods last month.
The economist noted that the trade war has driven up construction costs and has damaged global business confidence for the year.