Trade Restrictions on Australian Economy

Running head: TRADE RESTRICTIONS ON AUSTRALIAN ECONOMY
Trade Restrictions on Australian Economy
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1TRADE RESTRICTIONS ON AUSTRALIAN ECONOMY
Trade restriction refers to artificial restriction on trade of the goods and the services in
between two countries. The trade restrictions take place as a by-product of the aspect of
protectionism. Trade war is indicative of economic conflict that arises on account of
protectionism. In the trade war, the state creates tariff so that it can restrict the growth of
another country (Smh.com.au 2019). Trade wars can lead to a full conflict taking place in
between the states. The nations output the composition so that they can move towards the
autarky position. This essay throws light on the effect of the trade war in between USA and
the China on the Australian economy.
The USA has imposed tariffs amounting to billions of dollars of the Chinese products.
This imposition of tariff has been retaliated by Beijing. The USA has been instrumental in
imposing three rounds of the tariffs on the Chinese goods that has amounted to more than that
of $ 250 bn. It has been found that the duties range from 10 % to 25 % that helps in covering
wide range of the industrial along with the consumer items (Bbc.com 2019). USA has also
imposed tariffs on the import of the goods like the steel and the washing machines that has an
effect on the products coming from China. China on the other hand targets the products that
includes the chemicals, coal along with the medical equipments. The range of the tariff varies
from 5 % to 25 %. It has targeted the products that are made within the Republican districts.
Donald Trump has imposed the aluminium along with the steel tariffs that can help in
offering protection to the industries of America. 25 % tariff has been imposed on $ 60 billion
of the Chinese exports to US that includes aerospace information along with the
communication technology (Smh.com.au 2019). China on the other hand has placed fees on
various kinds of the US products that includes scrap aluminium along with the apples.
Donald Trump has promised that he would impose tariffs on around 1300 Chinese products.
Tariffs aims of pushing back against the demands of China pertaining to the technology
transfer from that of the US companies.