The Destructive Impact Of Trump’s Tariff War

The Destructive Impact Of Trump’s Tariff War

December 5, 2018

The destructive impact of Trump’s tariff war

We can clearly see the impact of President Donald Trump’s trade war. In this regard, every region of the globe saw its foreign-trade growth drop in November. Data from the Swiss freight giant Kuehne + Nagel shows global trade grew 0.3% in November. In the same month last year, it grew 3.1%. Its data was in line with what Maersk released earlier this month about slowing global container trade growth. But China cannot compete with the US in this trade-off with the tariff. Because its exports to the USA are much higher than the US exports to China. Read below about the destructive impact of Trump’s tariff war.

Slowing international commerce comes towards a backdrop through which the US has launched tariffs of 10% on $250 billion value of Chinese language items getting into the US. As a result, Chinese policymakers will retaliate, albeit on a smaller scale.

Probability of 20% tariff for car import

Trump talked about the possibility of a 20% tariff on European car imports. Thus, he, referring to the readiness of the tariff, puts a value of $ 500 billion to put pressure on China. He also has stated that these measures do not have political motives. This is because of China’s years of abuse. “I do not want to scare the Chinese. I just want them to do the right thing,” he said.

The US has already increased tariffs on imports of steel and aluminum goods from Canada, Mexico, and the European Union. Against the 28 members of the European Union, they did the same thing against American goods. Also, the Chinese government has called on other countries in the world to help prevent global trade from retreating.

The Global container trade continued to lose momentum in the third quarter. Maersk believes that it experienced slower growth this year. The increase was 4.2% compared to 5.8% over the same period in 2017. The US agreed not to raise the 10% tariff rate on $US 200 billion worth of Chinese goods to 25% on January 1. While in return China committed to buying a “very substantial amount” of agricultural, energy, and industrial goods from the US.

An alarming slowdown in global trade

The USA will apply agreements of up to 10% from January. The Chinese Foreign Ministry issued a statement on Wednesday (June 11th) calling it “totally unacceptable,” an example of the “eternal Egyptian victims.” At the same time, the Chinese Ministry of Commerce called Washington’s action “shocking”. Also it complained to the World Trade Organization. China says it will make a new deal with the US, although it does not have large exports to China.

TopShipping

President Trump introduced new tariffs on imports from China on Thursday. They was in connection with the theft of US intellectual property and the illegal transfer of its technology to Chinese companies. According to reports, new commercial tariffs are imposed on imports of about $ 60 billion in Chinese goods. He said the tariffs are being used to punish Chinese companies for theft of American technology. In contrast, China says the war on business is not in the hands of anyone, but if it is forced, it will not retreat.

President Trump introduced other tariffs on China’s solar panels two months ago. Major retail and US-based IT companies, including Walmart and Apple, have warned that tariff regulation will raise commodity prices for consumers in the US. Also it may not have a negative impact on trade deficit with China.

Trump’s tariff war is having a devastating impact

He was promising to crack down on China’s trade deficit during the presidential election campaign. Trump has stated it over and over again that China exports to the US much more than its imports from them. He also said in a speech that the war is “good” and “easy to win.” On Wednesday, (WTO) admitted that Washington did not vote for them in 2014. It referred to anti-subsidy tariffs on various Chinese goods, including solar panels and wind turbines. It is a move that has been a victory for China in World Trade Organization.

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