True colors of a United States and China trade war
The tension between the United States of America and China has recently reached its peak and it is all thanks to American $34bn tariffs imposed on Chinese goods. Such a decision not only evoked some heated discussions but also started the unspoken war between two competitive economic powers. How is this situation going to affect international relations between those two countries and what is the future of the American-Chinese dialogue which already has some difficult past?
6th of July became the date of decreasing the already existing taxation to 25% on Chinese goods. Of course, Asian continent has not remain indifferent and has also imposed 25% levy on 545 American products, worth $34bn in total. Such decisions have significantly exacerbated the already tensed atmosphere between two largest countries in the world and for sure, started the biggest trade war in the history. Chinese authorities accuse Washington of throwing their relation into disarray and destroying the already existing economic order of things.
The American tariffs that have been established on 6th of July, 2018 are the result of Donald Trump’s bid in order to protect American jobs and put unfair and illegal transfers of American property to China to an end. What is more, American government plans on introducing another $16bn taxation on Chinese goods, which probably will become operative at the end of this month.
Here raises the question – how will this affect both American and Chinese economics? According to Peterson Institute of International Economics, the imposed tariffs will mostly affect American industrial products and Chinese agriculture. What is more, Donald Trump has already established levy on imported washing machines, solar panels, steel and aluminium from the European Union, Mexico and Canada, which might also contribute to the deterioration of relations between those countries.
Analysts and experts claim that not only will US President’s decisions affect world market and international economics but might also lead to future, even more heated conflicts between United States of America and China. The escalation between those two economic giants might bring only negative outcome, resulting in still growing disagreement that one day might occur to be a ticking time bomb.