Two of the world’s giants are standing eye ball-to-eye ball, and no one wants to blink. The world’s largest two economies have started a vicious trade war. It started in 2018 when the countries started imposing tariffs on each other’s goods. The tariffs have reached to the worth of hundreds of billions of dollars. US President Mr Donald Trump’s election campaign slogan “Make America Great Again” and the accusation towards china for unfair trading is being considered the main reason behind this traded war. Whereas according to the China-United States of America is trying to limit the growth of the Chinese economy and becoming a global economic muscle.
US president’s tariffs policy’s objective is to reassure that the American consumers are buying, products that are only made in the USA. To achieve that objective, Donald Trump imposed tariffs on traffic on china which was a major exporter to the USA. The tariff imposed by the USA is more than USD 360 billion. In the retaliation china imposed USD 110 billion tariffs on US products. In 2018, Washington further delivered three rounds of tariffs, and another following in September 2019. Recently Chinese imports were targeted to 15% duty, and Beijing retaliated with tariffs ranging from 5% to 25% on goods imported from the USA.
Statistics of the Trade war
In July 2018. US imposed the tariffs of USD. Thirty-four billion and china in the response imposed tariffs of USD 34 billion on American goods. In August 2018, US stroked again with the tariffs of USD 16 billion and China replied with the same. Following that the trump administration increased the pace of tariffs, it imposed 10 % tariff on the goods of around USD 200 billion and which was answered by China with 10% tariffs on goods of USD 60 billion. Yes, China was unable to reply with the same force as the trade deficit between the two countries is huge. China has been earning a fortune by liberal trade policies of America. In May 2019, the US administration further imposed the duty of 25% on the goods of value USD 200 billion, which was replied by china in June 2019, not to the same amount of goods but equal in percentage, 25% on USD 60 billion. Both countries have further threatened each other for imposing more duties. The US took further steps by imposing bans on Chinese companies such as Huawei and accused to of the espionage and Intellectual property theft. Huawei the leading network equipment producer in a leader in 5G technology as well.
Consequences for US Companies
Following the ban on Huawei by the US government, US tech companies joined hand with the administration and pledged to stop selling goods or services to Huawei. Many US top tech industries, manufacture there products in china due to skilled workers and cost of production. Terminating the business in china means increasing the cost of their goods, especially in the information and technology sector. Products such as Apple inc. Are earning a fortune by manufacturing china. Apple lovers might witness the increase in the products of their brand if the operations are terminated in China.
Under the phase one of the deals signed in January, the Chinese government pledged to increase US imports to china by USD 200 billion concerning the level of imports in 2017, and it will strengthen intellectual property rules. The situation is not improving any further due to various international factors, such as US-Afghan Taliban peace talks, US-Iran tensions, Middle East uncertainties, US-North Korean crises, Riots in China-Taiwan. All these factors created a situation for the US to delay imposing tariffs on Chinese goods till December 15, the product included Smartphones, Video game consoles, laptops, computer screens, clothing and footwear. The most important factor that determines the future is the upcoming US presidential elections. US President has to make that he pressurises China to come to the terms and negotiate according to him. As he has to go back to the elections with the slogan of Made in America. The US administration well manages the threat of unemployment in the import industry. However, building a wall on Mexican borders by getting the funding from the Mexican government remains a distant dream. In the initialising of the trade tensions, it was forecasted that Donald Trump is following the policy of isolation that was followed in the 1930s. Trumps is completely focused on getting out of Afghanistan, as he has successfully pulled out US troops from Syria. The emerging of a novel coronavirus in China and US quick blockage of people to people contact is further deteriorating the relations between the two. As the US Doctors are leading researchers for the cures of disease. US administration has currently stopped its doctors to go to china or provide any Nursing Assignment Help. It is estimated that the next round of tariffs blows will appear after the US elections and after the Coronavirus epidemic.
Alexa Bliss is a PhD in International Relations, Currently teaching as a Professor of International Political Economy. She works with students all over the world for the research on different topics on international relations and others such as Medicine, Health and Nursing Assignment Help and other such topics in various countries.