Impact of Trade War between US and China

Running head: IMPACT OF TRADE WAR BETWEEN US AND CHINA
Impact of Trade War between US and China
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1IMPACT OF TRADE WAR BETWEEN US AND CHINA
Strained relationships between the countries
The trade war between China and US has created a considerable effect on the world
that started on 22nd January, 2018. The main reason that led to the start of war between the
two super powers is the tariff that both the countries imposed on each other. It was regarded
that the main cause for imposing tariff rates was to restrict the business activities that both the
countries performed in the international markets. It was started by President Donald Trump
declaring that it is the step to restrict the immoral and unjust practices that China has been
performing in the sector of trade. US blamed China for the theft of copyright of products and
certain human intelligence (Wheeler et al. 2014). The Trump government has put the
regulations on trade to ensure that the practices that violate the code of conduct in the
international markets. The authority that the US senate gave to the President to impose
financial punishments on the countries that violate the trade policies created an uproar around
the world and China was the target of the increased tariff rates by the US administration
(Bhattacharyya and Williamson 2013). The impact of the trade war between US and China
due to increased tariff was reflected on every country of the world and the effects on
Australia will be discussed. The rift in the economic sphere led to a state of cold war between
the countries that supported both of them.
Effect of on the imports and exports
Australia is one of the world’s leading economy and the trade war between China and
US has an evident impact on the economy and imports of the country. The importers are
suffering from the threat of being affected by the tussle of both the countries. The threat is
experienced in the economic sphere and the Australian government has called for restraint of
the superpowers to maintain peace (Farrer 2019). The products that were exported and
imported from China were now unavailable in the markets and there was surplus quantity of