The US And China Trade War

Running Head: Economics
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International Business
US-China trade war
3/4/2020
Essay: The US and China Trade war

Economics
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Trade wars are good and easy to win” was stated by the U.S. President Donald Trump on Friday
and he has twitted this thing. He has given this statement after announcing the tariffs on the
imports of aluminum and steel (Hosain and Hossain, 2019). The rates which he has applied on
the steep tariffs on the imports are 10% on aluminum steel and 25% on imported steel. Due to
this trade tariffs, billions of the dollars was loosed by the USA while trading with the other
country.
For Example: If the US is trading with any country when they are billion are down such as $200
billion with another country and that country gets cute, and then nobody will trade with the
country. This was the idea Trump has that we win big if they don’t trade anymore.
Wall Street in Europe and Asia has feared the trade war and this was impacting the share price of
the steelmakers. The share price has shifted hard and US market manufacturers' supply will also
get hard (Itakura, 2020). This major impact of trading has been seen in the decline of the shares
and indexes extended their losses. The 400 points were falling with the Dow which leads to the
unintended consequences.
Trump thought that by raising the tariffs the American jobs will be safeguard but as per the other
economist many jobs will be destroyed such as in the field of the auto and oil industries as the
increasing price of the steel and aluminum is impacting the curb on imports but chain air
predicting this thing as the harm (Waugh, et al., 2019). China is thinking if the trade tariffs will
be imposed at the high rates then the countries will not only get the loss but many jobs will
decline. If the examples of the US are followed by the other countries of imposing the high trade
tariffs then the other countries also have to suffer the harm.
The two big countries of the nation are US and China are fighting with the trade wars and it was
started on the 19 June. Trade war has affected both the countries and consumer of both countries
has to paid higher prices (Sussangkarn, 2020). It is an economic conflict that was raised between
the two countries due to the increase in trade tariffs. The trade war not only affected the countries
in a bad manner but also affecting the consumers, companies, and economies.
The US has started the trade war by putting the high rate of tariffs on China. The country US has
claimed China that they have theft the US Intellectual property. Trump thought that by imposing

Economics
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the high rates of tariffs on steel and aluminum, the country will become much stronger and their
nation will be in a top manner.
China and the US are very much linked with each other in terms of trading partners as there were
many goods and services which were traded by the two largest countries. In China US companies
are getting cheap labor, the cost of the production is lower so it was negatively impacting the
export market of the US. China owes a lot to the US as its foreign debt is very high.
The US not only imposing the high tariff rates but it is also putting high barriers of the trade on
China. To remove the US trade deficit, Trump always advocates the high tariffs and save the
country from ripped off. But later on, the country's the US only facing major issues by imposing
the tariffs such as issues related to the struggling of the manufacturers and farmers (Evans,
2019). The prices for the consumers for buying the goods and services have increased. The
burden on the domestic manufacturers has increased as due to the unfair trade practices the local
manufacturer has to suffer more. Even the stock market of China and the US get unstable due to
the trade deficit.
The tariffs are announced on the washing machines and solar panels. From China, 8% of the
solar panels are imported and residential washing machines are about $1.1 billion in 2015. From
China, the US imported steel about 3% and Trump has imposed the tariffs all over the country on
steel and aluminum (Liao and Kannan, 2014). The US has imposed tariffs on the various goods
and services of china such as medical devices, aircraft parts, satellites, flat-panel decisions, and
the other different weapons.
The investment restricts were imposed by the US on China and 25% tariffs are imposed on the
$50 billion of the Chinese goods which are significant to the technology. The trade talks are
discontinued if the trade sanctions are imposed more on china and they will not do the trade with
Washington. Later on, Trump also clarified that 25% tariffs on the exports of the Chinese worth
$50 billion (Sussangkarn, 2020).
Now China has accused this war and they were also started responding to similar tariffs for the
US imports. The commerce ministry of China is responding to the US trade war but within the
few days, the US had declared other tariffs of 10% on the Chinese imports worth $200 billion if
china raised any issue against these US tariffs (Bhala and Stumo, 2018).