Current Affairs Classes Pre cum Mains 2025, Batch Starts: 11th September 2024 Click Here for more information
News:
- The U.S.-China ongoing trade war
Important facts:
2. Both U.S. and China, implemented a tariff of Rs 25% on imports worth $34 billion.
3. Present trade war has the potential to cause some significant damage to the world economy.
4. In the beginning of this year, the U. S. President Donal Trump imposed tariff on imported solar panels and washing machines.
5. This results to possibly tax all Chinese imports into the U.S. , which previous year added up to a little over $500 billion.
6. China has responded by targeting American exports like Soyabean and automobiles.
7. This could cause job losses in America.
8. Other major U.S. trading partners such as European Union, Mexico, and Canada have also slapped retaliatory tariffs on various U.S. goods.
9. Impacts of trade wars in general:
- Affecting own economic interest.
- Disadvantage to its customers
- Consumer will have to pay higher prices for certain goods
- Tariffs will also disrupt the supply of producers who rely on foreign imports.
Impact on U.S:
- An economic uncertainty due to trade war is affecting private investments in the U.S.
- Many investors deciding to scale back or delay their investment plans.
- It could also isolate the U.S., which has refused to settle differences through serious negotiations, as other global economies strike trade deals on their own.
- Recently, 11 Asia-Pacific countries went ahead to sign a trans-Pacific trade deal while leaving out the U.S., which had pulled out of the Trans-Pacific Partnership in early 2017.
Impact on China:
- China is fighting an economic slowdown.
- The ongoing trade war also threatens the rules-based global trade order which has managed to amicably handle trade disputes between countries for decades.
