US Imposed Tariff of China
This is as the president and his campaign team had promised during the previous presidential campaigns. Ideally, Trump had promised that he would make tremendous changes in the economic relationship between the United States of America and other countries especially China, Japan, and other first world nations (Noland 2018). Moreover, China is often seen as a threat in the Asian market and it has also taken steps to grow its economy and dominate the world (Kennan & Riezman, 2013). As such, China has since been affected most as the tariffs imposed on its products imported to the U. S have been greatly increased, hence raising alarm which has led to China reciprocating and reacting to the same through imposing relevant tariffs on the U.
On the same time, the Chinese customs administration had promised that retaliatory tariffs would be implemented simultaneously. It is worth noting that ahead of tariffs’ implementation, president trump, through Ross, the U. S commerce secretary, conducted negotiations with Chine commerce officials. The talks during the particular meeting led to a seemingly positive as well as concrete development. Moreover, it should be taken into account that the report offered some details regarding the official talks regarding business between the two countries. This is after Brazil which equally exports relatively much higher amounts of soya beans to China. In a nutshell, according to the Chinese business research, it is believed that much of the goods imported to the country from the US can be acquired from elsewhere just like soya beans which is one of the stable meals in China.
Moreover, China also believed that on the vent that it withdrew some exports to the US such as machineries; the US would incur more costs acquiring the same products from other countries such as Japan and Korea which are much expensive both in purchase as well as transportation. Provided that the US decided to go either direction, it would have been required to have a second thought about its relationship with optional source countries in questions. For instance, its political and social relationship with Korea is not health as they have had political rankles for a couple of decades now. It is essential to get to the root of the matter as to understand the reason behind president Trump’s push for the Chinese Tariffs.
Reflecting back to the US’ economic analysis, the country has always had significant deficits with China (Noland 2018). For instance, in the previous year, America lost an approximate of $375 billion as a result of conducting trade with China. According to Trump, the tariffs would greatly help in slashing down the deficit to about $100 billion annually for the beginning as future measures would be taken to further reduce it, hence improving the productivity of the American economy. On a record, Trump uttered that he had no ill motive behind his China tariff proposal but rather wanted his government to do something very considerable concerning the trade deficit so as to swiftly get along with China. In fact, many people argue that the latter will affect many big companies especially on the NYS exchange and that forms the basic reason as to why many individuals are worried.
Notably, the on China tariff announcement has equally impelled European stocks to extend losses, with the SE 600 falling 1. Additionally, a range of Asian stocks have equally fallen following Trump’s announcement. Many people have also tried to inquire the effects of the latter on the Chinese Yuan. In a nutshell, the Japanese Yuan has suffered drastic daily fall against the dollar in just a couple of weeks following the proposed measures. However, China has not given in to any of the allegations imposed against it by the American government led by President Trump. Moreover, further impact of the trade between the two countries is that American farmers have been worried especially on the procedures of farm produces such as soya beans which form the basic export to China.
On the other hand, the tariffs pose a price fluctuation on the higher side especially on farm inputs and machinery which are most relied by American farmers. As a result, the U. S business community has now raised alarm to the federal government as it wants it to rethink on its China tariff plans, opining that the plan’s prospects will lead to new taxes on American consumers as well as businesses which will further lead to the declining of the country’s general economy on an annual basis. com/doi/abs/10. 1111/aepr. 12226 Ossa, R. Trade wars and trade talks with data. American Economic Review, 104(12), 4104-46. 1142/9789814390125_0004 Wearden, G. (2018, July 16). IMF warns on trade wars; China's economic growth slows ? as it happened.
From $10 to earn access
Only on Studyloop