Trade Wars
GROWING TENSIONS SINCE THE ELECTION OF DONALD TRUMP TO PRESIDENCY HAS TURNED CHINA-USA RELATIONS INTO A “HOT” TRADE WAR.
Donal Trump set off the trade war with his recent “When a car is sent to the United States from China, there is a Tariff to be paid of 2.5%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade? No, it sounds like STUPID TRADE” remarks. The following developments followed:
In March, the Trump administration imposed a 25% tariff on imports of steel, and a 10 % tariff on aluminum.
Then China enacted 15-25% tariffs on 128 American goods.
USA, in response, accused China of stealing US technology by infringing the intellectual property rights of American, and announced plans to impose further tariffs.
China, in turn, slapped 25% tariffs on 106 US products ranging from whisky, cigars, to-bacco, beef, plastics, wheat, electric devices, chemicals, automotive, aircraft to soy-beans.
In response to this move, which he regarded as an “unfair retaliation”, Trump ordered ex-tra $100 billion tariffs on Chinese products.
Trade Between USA And China
US goods exports to China
China goods export to US
The trade wars between USA and China are expected to take shape largely in accordance with Trump’s calculations about domestic politics. China’s retaliations, on the other hand, will most likely target those industries and groups that form Donald Trump’s support base. Countless speculations are also being made about the potential impact of this war on other economies of the world.
