Why has the United States decided to impose tariffs on Chinese imports? Should we be worried about the potential of war breaking out between the two countries? What would happen if the United States and China stopped trading with each other? All these questions are valid concerns, and this article will do its best to help you understand the current trade war situation between the US and China, as well as what would happen if it escalated into all-out conflict.
A Timeline of Current Events
August 5th, 2019: The United States places a 25% tariff on $16 billion worth of Chinese imports.
September 1st, 2019: The United States places a 10% tariff on $300 billion worth of Chinese imports.
May 15th, 2020: The United States Trade Representative releases a list of $300 billion worth of Chinese goods that could be subject to a 25% tariff. The US will target goods in industries such as aerospace, robotics, computer chips and other hi-tech industries where Beijing holds a competitive advantage over other countries.
Trade negotiations with China were halted last week when both sides blamed each other for breaking off dialogue due to trade tensions.
The Impact On China
If the United States were to stop trading with China, it would have a significant impact on the Chinese economy. China is highly dependent on trade with the United States, and would likely see a decrease in GDP if trade stopped. This could lead to social unrest and an increase in poverty levels. Additionally, the Chinese government would likely respond with tariffs of their own, which would further hurt the US economy. In short, a trade war between the US and China would be bad for both countries involved.
The Impact on the World
The trade war between the United States and China has been escalating for some time now, with each country imposing tariffs on the other's imports. If the two countries were to stop trading altogether, it would have a big impact on the world economy. The EU could benefit from being able to export more goods to China, but it is not likely that they would be able to fill the gap left by an absence of US-China trade. For example, Chinese consumers would need cars made in Europe or elsewhere.
Where Does That Leave Us?
In short, a trade war between the US and China would have serious implications for both countries and the global economy. If the US were to stop trading with China, it would likely have a negative impact on the US economy, as well as on world markets. However, it is worth noting that China would also be significantly affected by such a move. In particular, Chinese exports to the US would decrease dramatically, which could lead to a decrease in Chinese GDP.
Solutions to Deal With Trade War Issues
2) These measures have already caused some industries in China to experience slowing production rates and growing insecurity about trade agreements; 3) Many corporations within China have warned that they might need to cut jobs in response to these new developments; 4) However, at this point, it is unclear what will happen next. It seems as though neither country wants a full-blown trade war.