Sunday, 22 September 2019 09:57 GMT
img

Will The US-China Trade War Turn Out To Be The Largest Trade War In Global Economic History?




(MENAFN - ABC Investments) It allstarted with the US imposing tariffs on imported Chinese goods in March 2018, claiming
that China had been involved in unfair trade practices for the past many years.
Thus, began the famous US China trade war in 2018. Since then, both the US and
China have been imposing taxes on items imported from each other. Donald Trump
threatened to impose 10% tariff on goods worth billions of dollars including
television sets and medical devices, which are imported from China to the US, resulting
in a number of conflicts in the trading industry.

Only a
month after that, China reacted to this by imposing an even higher rate of tax
on various goods and items imported from the US. This continued till the first
half of 2019, after which the presidents of both the countries, Donald Trump
and Xi Jinping, announced a truce where they agreed that no further tariffs are
to be imposed on traded goods. However, the already levied taxes were to remain
in effect.

The global economy suffered huge losses, but
also made some profits during this trade war. Employment rates went
significantly down as a result of high uncertainty in the markets.

US
claimed that China is responsible formanipulation
of the currencyand Donald Trump threatened to increase the
tariff rates on major items imported from China. However, the International
Monetary Fund (IMF) evaluated both Yuan and the US dollar and declared that the
Chinese currency was correctly valued whereas the US dollar was overvalued.

This
turned the tables and China began imposing trade sanctions on the US, while the
US delayed the execution of taxes on Chinese goods. China suspended the
purchase of agricultural products from the US and decreased its US treasury
holdings.

It is
possible that the trade war between both the countries dampens down and the
sanctions get removed in the near future. The investors and traders are waiting
and watching for the next steps taken by both the governments as whether the
bubbling tensions would diminish or emerge in an all-out trade war between
these largest economies in the world.


Daniela Paul

Daniela is America News Hour journalist and an expert in Finance, agricultural investments, economics, financial markets, new media, international relations & politics. Daniela has been a writer and editor for the past 11 years. She started out as a freelance content writer. Today, her articles have been picked up by major and local news sources and websites such as the CNET, Engadget, BuzzFeed and many more.

MENAFN2308201900920000ID1098917354


Will The US-China Trade War Turn Out To Be The Largest Trade War In Global Economic History?

  Most popular stories  

Day | Week | Month