Its official, the world now has economic warfare, and its due to the Trump administration. Which has been created through Trump implementing tariffs on all imports into the USA from China. Estimated to be worth over $US500 billion in multiple waves by 2019. These new tariffs include consumer products and capital goods, and in somewhat of a negative frame would likely increase prices for US businesses and consumers. Overall the increased costs from the new tariffs could hit the American economy quite hard, yet Trump believes that these measures are warranted now before China becomes increasingly powerful. Trump also desires to discipline China for its large trade surplus, unfair trading practices, theft of US intellectual property and one-sided economic policies that have favoured China for several decades.
In turn, China has retaliated with its own set of tariffs worth $US50 billion and a second hit worth $US60 billion on American imports. China’s Finance Ministry said its tariff upsurges are designed at limiting “trade friction” and the “unilateralism and protectionism of the United States.” This Tariff War has continued to increase tensions as there was no announcement on whether China would bail out of trade discussions which were requested to by the U.S. The Chinese Commerce Ministry went on to say that the U.S. intensification “brings new uncertainty to the consultations.” The two nations uncertainty and international relations have suffered under non-successful formal talks and meetings throughout the Trump administration. This became evident through Trump recently retracting the 144-year-old international postal treaty. Which allowed for China to cost effectively ship its goods to the U.S. This economic warfare looks to remain and we can only hope it doesn’t lead the global economy into recession.