The fact that the US is putting first place goes hand in hand with how they cope with international trade, especially with China. Donald Trump often said that China is responsible for almost half of our trade deficit and believes that his government is manipulating its currency. To counter this, Donald Trump proposed applying a 45 percent tariff to all Chinese imports. The Trump administration says that this figure will be obtained in the years when China stole jobs and manipulated the trading system. Recent studies have shown that the total loss of jobs in the china us trade relations is 2 million. Most of these jobs are in manufacturing.
Fearing a significant tariff on their imports, China has now threatened to take revenge if these tariffs are actually introduced. The government of China transmitted the message to the US government. I call against these “extravagant” rates (McDonalds). China’s Minister of Commerce, Zhong Shan, said that the United States and China are interdependent and that bilateral trade relations will have an impact on the global economy. They fear that if something starts to escalate in a commercial war, it may be inevitable (McDonald).
The trade war between the United States and China will have a significant impact on both economies. First, if Trump enters its tariffs, China’s exports to the United States will fall by about 25 percent. This means that China’s annual economic growth will drop to 1 percent. If China responds and introduces a tariff for the US. Its economic growth would assume a quarter percentage point (Reuters). Not to mention the consumers who will suffer.
If taxes are imposed on Chinese imports, companies will be forced to raise their prices, which will damage the consumer of these goods. In fact, it comes down to the fact that the United States is trying to reduce its trade deficit with China. There are a few ideas on how to do this. One of the ideas was that instead of introducing a tariff for all Chinese imports, he set only specific tariffs. These tariffs will apply to products that are facing strong competition from Chinese imports, such as steel, cars and auto parts. Another way to reduce the deficit would be to increase service exports to China as per china united states news.