Ill Effects of a Sino American Trade War
President Trump has been very vocal about his disdain for the economic policies that China has implemented in the past. President Trump, like a lot of Americans, believes that the Chinese have unethically outsmarted Americans in the past. He therefore wants to take strict measures and send clear messages to China. However, the United States cannot dominate China like it can dominate other nations. The relationship between China and United States lies more on mutual interdependence. Both parties are likely to suffer severe economic setbacks if the trade arrangements between them are broken. This is why past United States presidents like Barack Obama were extremely careful while dealing with China.
President Trump, however, has the reputation of being a hard taskmaster and a rash statesman. He has recently implemented countervailing duties on Chinese aluminum foil. This is because he believes that China has been illegally subsidizing these goods in order to destroy the businesses of local American manufacturers. The Chinese have built their entire nation on exports and foreign trade. They are unlikely to take this lying down. It is likely that they too will impose heavy tariffs on many American products. The end result may be a full blown trade war between America and China. Many experts have been predicting this outcome ever since Donald Trump became President of the United States
In this article, we will have a closer look at some of the possible effects of an all-out trade war between United States and China.
The bottom line is that China is also an economic power like America. Donald Trump cannot bully China into submission. China is fully capable of retaliating even though the retaliation may have negative economic effects for both nations involved.
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