The United States is no longer the world’s most competitive economy. As per IMD World Competitiveness Center, China is hurting the ability of US companies to compete globally. The ongoing trade war with China is hurting companies in the United States more than in any other country. While the US dropped in the rankings, Asian-Pacific countries fared much better. Both Singapore and Hong Kong have more competitive economies than the US. Eleven of the 14 regional nations analyzed stayed the same or rose in the evaluation. Indonesia and Thailand both experienced significant rises. Some Middle Eastern nations also experienced significant progress in the rankings, with Saudi Arabia leaping 13 places and Qatar rising four to earn its spot as the world’s tenth most competitive economy.

High fuel prices and fluctuations in the dollar’s value have diminished the confidence-boosting impact of American tax policies. The ongoing trade war between the US and China has inflicted uncertainty upon, and caused rapid fluctuations among, global financial markets. Global markets plunged and oil prices dropped when the US announced tariffs increases on Chinese imports. In a single day, the Dow dropped 470 points before making up most of its losses. The next day, after the US confirmed it would be levying the tariffs, markets again plunged.