These are the repercussions of the Trump trade wars

WASHINGTON (Reuters) - The intensifying trade war between the United States and China has affected the global economy, a report by The Wall Street Journal reported on Monday.

The trade war has caused a loss of confidence in small US companies, disrupted business among Asia's industrial giants, and damaged the export-oriented factories in Europe.

On Sunday, the United States imposed 15 percent new duties on Chinese goods, including clothing, tools and electronics.

China has carried out its threat of retaliation against the sanctions imposed by the Trump administration by targeting US soybean imports, crude oil and medicines, as well as filing a complaint with the WTO over the administration's duties on its goods.

Small US companies are in pain
According to a survey by the Wall Street Journal of more than 670 small businesses, economic confidence in US small businesses fell in August to the lowest level since November 2012.

Last month, Festag International conducted a survey of the activities of some of the smaller US companies, and the results showed that 45 percent of those companies would be affected by Trump's fees.

"In fact, it's difficult to adjust to price increases, but it's even more difficult when you're not sure what will happen in the future, especially for small businesses," said Richard Curtin, an economist at the University of Michigan who analyzed Vestage data.

"This means being more cautious when it comes to planning to invest or hire more staff."

Asia Europe countries
On the other hand, Japan explained that the capital expenditure of manufacturers in the country fell by 6.9% in the first quarter of 2019, in fact the first decline in almost two years.

On Sunday, South Korea reported a 21.3 percent drop in exports to China in August compared to the same month last year, resulting in a 13.6 percent drop in total exports.

Several reports published in recent days have pointed to the worsening repercussions of this trade war worldwide.

The paper pointed out that tariffs on imported goods increase pressure on multinationals when it comes to costs, which is why they are looking for alternative ways to compensate for their loss.

Some surveys also pointed to a decline in industrial activity in Japan, Taiwan, South Korea and Indonesia in August, with mixed results in China.

In Europe, there was a marked decline in industrial activities in Germany, the world's leading supplier of machinery and technological equipment.

Data on Thursday showed German industrial orders fell more-than-expected in July due to weaker demand from abroad, signaling continued difficulties for manufacturers in Europe's largest economy in the third quarter, Reuters reported.

The paper notes that trade talks between the two countries have been stalled since late May, after they were about to reach an agreement. Since then, negotiators have unsuccessfully sought an agreement that would oblige China to buy more US agricultural products in order for the United States to ease restrictions on China's Huawei.

Smartphones, laptops, video games and other Chinese products will be charged an additional 15 percent from December 15, according to the newspaper.

Trump denies
Trump denies the idea that his negative trade policies could hurt the US economy, blaming poorly-run companies, saying they are the cause of business setbacks, and the Fed also called for cutting interest rates to support the economy.

China and the United States have agreed to hold high-level trade talks in early October in Washington, the Ministry of Commerce said on Thursday.

Trade teams from the two countries will hold talks in mid-September ahead of the high-level talks the following month, the ministry said.

US President Donald Trump said on Tuesday he would adopt a "tougher" stance in his second term if China stalled negotiations, exacerbating market fears that trade disputes between the two countries could spark a US recession.