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The Trade War Escalation between the U.S. and China has escalated over the past few months, with each country introducing fresh tariffs on imports from one another. Moreover, Trump’s administration has also announced plans for new measures targeting Chinese products directly and restricting Chinese investment in key sectors like Information Technology and Artificial Intelligence. This article discusses the latest developments in the US-China Trade War, and who will be the winner in this conflict?
The US and China Trade War:
The United States and China have been engaged in a trade war since March 2018, when President Trump announced 25% tariffs on steel and aluminium imports. The next month, the administration imposed 25% tariffs on $50 billion worth of Chinese goods, including chemicals, electrical machinery, and auto parts. China did not hesitate and imposed tariffs on U.S. agricultural products, metals, and other manufactured goods.
The U.S. government responded by raising tariffs on $200 billion worth of Chinese goods to 25% from 10% and threatened to impose tariffs on all imports from China worth $500 billion. The Trade War Escalation between the U.S. and China has escalated over the past few months, with each country introducing fresh tariffs on imports from one another.
Moreover, Trump’s administration has also announced plans for new measures targeting Chinese products directly and restricting Chinese investment in key sectors like Information Technology and Artificial Intelligence.
Why is there a Trade War between the US and China?
The Trump administration has imposed tariffs on $250 billion of Chinese goods, claiming that Beijing uses unfair trade practices to steal American jobs and intellectual property. Beijing has imposed tariffs on $110 billion of American products, including agricultural goods and cars. President Trump has said that he’s ready to tax all Chinese imports.
The U.S. has imposed tariffs on $50 billion worth of Chinese goods, to which Beijing responded in kind. The U.S. president has threatened to impose a 10% tariff on another $200 billion worth of Chinese goods, which Beijing said would retaliate.
The Trade War Escalation between the U.S. and China has escalated over the past few months, with each country introducing fresh tariffs on imports from one another. Moreover, Trump’s administration has also announced plans for new measures targeting Chinese products directly and restricting Chinese investment in key sectors like Information Technology and Artificial Intelligence.
What Is Tariff In This Case?
A tariff is a tax charged for importing or exporting goods and may also refer to a tax imposed on a type of well brought into a country. The taxed goods are called “tariff goods” or “import tariff goods” if imported. The goods taxed when exported are called “tariff goods” or “export tariff goods.”
Tariff rates are revenue imposed as a percentage of the sale price of imported goods. Tariffs are used as a type of trade barrier to try to protect domestic industries from foreign competition. They may also be used as a strategy to generate government revenue. When a government imposes a tariff, it designs a tax on goods imported from another country.
The tariff is imposed on goods as they enter the country. They are an attempt by the government to increase revenue by collecting taxes on imports or protecting domestic industries from being undercut by imported goods.
Key Developments in the US-China Trade War: Trade War Escalation:
As the Trade War Escalation continues, the latest tariffs imposed by the two countries have created a ripple effect globally. The trade war affected Chinese goods worth $110 billion and US goods worth $100 billion. The latest tariff escalation will affect another $100 billion worth of goods imported from China. The U.S. government has imposed tariffs on $50 billion worth of Chinese goods, to which Beijing responded in kind. The U.S. president has threatened to impose a 10% tariff on another $200 billion worth of Chinese goods, which Beijing said would retaliate.
Who Will Be The Winner In The Us-China Trade War Escalation?
As the two largest economies in the world and with huge tariff rates on each other’s goods, there are fears the US-China Trade War Escalation will significantly disrupt global supply chains and harm both countries. Being a developed economy, the USA can afford to protect its industries and impose tariffs, but this will affect its exports, revenues, and companies’ earnings.
On the other hand, as an emerging economy, China cannot afford this kind of loss, but again, it will find ways to survive and thrive. The companies and industries affected by the tariffs have already started to feel the heat, and the consumers are expected to bear the burden of the tariffs. The tariffs are expected to increase inflation, reduce purchasing power, and affect businesses in the USA and China.
Conclusion:
The US-China Trade War Escalation is expected to last longer as both the countries have enough strength to sustain the war, although it will affect their economies. The developed economy of the USA will be the lesser affected, but the emerging economy of China will feel the pain more. Businesses and industries worldwide will be affected, but the consumers will be affected the most.
