Developments in US-China Trade Disagreements

Running head: International Business
International Business
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International Business
Table of Contents
Introduction................................................................................................................................3
Summary of the report...............................................................................................................3
Subsequent developments in the US China trade disagreements...............................................4
Discussion of the developments of three scenario contexts.......................................................5
Rationale....................................................................................................................................6
Conclusion..................................................................................................................................6
Reference list..............................................................................................................................7

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International Business
Introduction
The introduction of the business relationship among two emerging developed nations
United Nations and the China will identify the developments of the trade disagreements that
will basically identify the development of the contexts or the scenarios that has led to the
development of such situations. The main aim of this study is to identify the innovations in
the trade policy that has enabled the development of trade war among these two countries.
The report “Trade Wars: There are no winners, on economic modelling of the expected
impact of the recent US-China trade disagreements” that has been published by KPMG will
be looking to find the solutions of this trade war.
Summary of the report
The report is going to identify the factors in the form of implementing protectionists
tariffs on the range of goods. The US economy already implemented tax on the imports of
steel and aluminium from the EU countries, Canada and Mexico. The US economy and the
government sectors is using the voted for the implementation of tariffs on the imports of the
automobiles from the European countries. On the other hand, the US economy has
implemented 10% of tariff on US$200 billion of Chinese merchandise. In the month of early
July, the US government has implemented a tariff of 25% on the US$34 billion of Chinese
imports. Through this implementation of tariff on the Chinese goods will allow the
development of the trade war. On the other hand, through the development of better
implementation of 25% of tariff on US$500 billion of goods that are to be imported from the
Chinese economy (Anon, 2019). Responding to the development of this tariff that has been
set by the US economy, the Chinese economy has also implemented a tariff of about 5-25%
of the goods and raw materials that are to be imported from the US economy. The main
insight of this trade war is making a severe impacts on the development of other countries.