Trade war Between US and CHINA
By Sandeep Nagyaan · 09 Sep 2018
Trade war Between US and CHINA:- US and Chin now are fighting for trading with each other .This fight was start from the side of the US president Donald Trump. It was starting in April 2018, the U.S. imposed tariffs on steel and aluminum imports from China, as well as Canada and countries in the European Union.
How it start:- US president Donald Trump, who began the year by imposing tariffs on imported solar panels and washing machine, has vowed to possibly tax all Chinese imports into US, which last year added up to a little over $ 500 billions. Other side china has responded by targeting American exports like soybean and automobiles with increase tariff. Other US trading partners like European Union, Mexico and Canada have also slapped retaliatory tariff on various US goods. Again on July 6, the U.S. imposed 25% tariffs on $34 billion worth of Chinese goods as part of President Donald Trump's tariffs policy, which then led China to respond with similarly sized tariffs on U.S. products.
Impact of trade war on world economy:- (1) Global supply chains and purchasing relationships are upset. (2) Higher costs for imported articles subject to tariffs. (3) This new tax increases the price that a potential purchaser would have to pay, we expect normal elasticity of demand relationships to predict a reduction of demand due to higher prices.