Strategic Analysis: Trump's Trade Policies and China's Rise

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This report provides a strategic analysis of the impact of US trade policies, particularly those implemented by the Trump administration, on the US-China trade relationship and global markets. The analysis focuses on the imposition of tariffs, such as those on Chinese goods and the impact on the lobster export market. The report explores the effects of these policies on various sectors, including agriculture, steel, and aluminum, and assesses how China has benefited from these trade dynamics. It examines the consequences of trade disputes, the shift in trade relationships, and the long-term implications for American industries and global economic structures. The report uses references to support the discussion and arrives at a conclusion that the tariff policy implemented by president trump and giving all the chances to china to flourish in the global market had let all the Chinese franchisees to capture the global market.
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Running head: STRATEGIC ANALYSIS
Strategic analysis
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STRATEGIC ANALYSIS
Discussion:
The lobsters being an important protein source, have been the top exported products
in America. Like the Americans, Chinese people have also been benefitted from these
products, and hence it has reduced poverty and hunger of the middle-class family, which
Maine was happily providing (Josheski, & Fotov 2013). However the china’s favorite lobster
sales have been decreased by 70 %, and American president Mr. DonaldTrump had imposed
tariffs by 25% which had reduced the cost of suppliers (Piraianu et al., 2016). Since the
lobsters were exported mostly from Canada and the same has increased the exports to double
which had thrown down Maine from their place. However, Trump had levied 20% export
duty over Chinese goods and cut tariffs for thousands of Sherman's, farmers, and firms (de Sá
Porto, Canuto & Morini, 2015). ). Hence it had been seen that because of this tariff imposed,
USA had been greatly benefited in two ways which are as follows-
Firstly Trump is looking to slap tariff over everything. The export chain had been
imposed from china to Beijing and elsewhere (Banik & Stevens 2015). Since Brazil and
Argentina had way out to provide some alternative source, but the Americans do not have
other choices. Hence they have to bank on it. On the other hand, China could have easily
force to buy Boeing to airbus, but those companies could get into trouble while assessing the
service they need to keep the process running and Beijing had mostly spread air fleets from
retaliation thus fared (de Sá Porto & Morini, 2017).
Secondly, Trump had no such real mitigations strategy while forcing strategy to
implement policies. Hence he had given thousands of dollars to the agricultural firms. He had
also secured 50 billion dollars to the steel and aluminum imports than china (Ahsan, Ghosh &
Mitra,2014). These transactional costs were very less than that of China. Hence American
industries and agricultural areas had faced high cost of incurring a loss and had to toil hard to
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STRATEGIC ANALYSIS
survive. Thus, in turn, it had made undergo long term losses (Matzenberger et al.,2015). The
steel and aluminum tariffs had mostly targeted the big brands of Canada, Japan, and else.
On the other hand, as per 2015north American free trade agreement had threatened
tariffs on 10 billion dollars over the current period. Hence the European car industry had
suffered heavily. China had cut the products price to capture the world market. Thus it is easy
to purchase Chinese products. Hence, in a nutshell, president, trumps policy have loosened
the hands of china, where they grabbed the opportunities (Black et al., 2016).
Conclusion
From this discussion, it can be concluded that the tariff policy implemented by
president trump and giving all the chances to china to flourish in the global market had let all
the Chinese franchisees to capture the global market. Hence the major markets in America,
Europe, and Canada had suffered much, and the commercial exporters had wen to make on
new relationships, and once the stage is set and new ties are being formed, the Chinese
exporters may not bother to switch off to new business.
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STRATEGIC ANALYSIS
References:
Matzenberger, J., Kranzl, L., Tromborg, E., Junginger, M., Daioglou, V., Goh, C. S.,
& Keramidas, K. (2015). Future perspectives of international bioenergy trade. Renewable
and Sustainable Energy Reviews, 43, 926-941.
Black, J., & MacBean, A. I. (Eds.). (2016). Causes of Changes in the Structure of
International Trade, 1960-85. Springer.
De Sá Porto, P. C., Canuto, O., & Morini, C. (2015). The impacts of trade facilitation
measures on international trade flows. The World Bank.
Josheski, D., & Fotov, R. (2013). Gravity modeling: International trade and
R&D. International Journal of Business Management and Administration, 2(5), 073-080.
Ahsan, R. N., Ghosh, A., & Mitra, D. (2014). International Trade and Unionization:
Theory and Evidence. Department of Economics, Syracuse University.
C de Sá Porto, P., & Morini, C. (2017). Trade Facilitation, the Authorized Economic
Operator, and the Single Window: A Gravity Model Approach.
Banik, N., & Stevens, P. (2015). Pharmaceutical tariffs, trade flow, and emerging
economies. Geneva Network, United Kingdom.
Piraianu, V., Dumitran, G. E., Vuta, L. I., & Dragoi, C. (2016). IMPROVING
EFFICIENCY OF A WATER SUPPLY SYSTEM BASED ON ENERGY
TARIFFS. International Multidisciplinary Scientific GeoConference: SGEM: Surveying
Geology & mining Ecology Management, 1, 459-464.
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