Hi! I work as a full-time digital marketer, and I love to blog about politics and current affairs. The US-China trade war has developed into a large-scale political crisis in recent time. As sources have confirmed, China has announced tariffs on $46 billion of US products, which will be operational from 1st June. This news popped up just three days after the US doubled its tariff on $200 billion Chinese goods. Apparently, China increased tariffs on 5, 000 items while imposing 5% to 25% taxes on the imports. The worst affected components include beef, lamb, pork, vegetables, oil, and beverages.
As you are familiar with the updates, Trump has taken the trade war to the global level, deliberately involving its allies, Canada, Mexico and EU. So how would the US-China trade war impact the global economy? With China imposing heavy tariffs on thousands of US imports, the US is likely to shift its focus on other countries to fulfil its national demands. Also, Chinese goods were taxed at higher prices in the US so this will draw exporters from other regions.
China’s aggression, as manifested in the new trade policies, may dump more goods to regain its hold in the international market. China is judicious when it comes to striking trade deals with Africa and Latin America, so it will extend its connection and explore deeper. Overall, the two nations would face severe ramifications in terms of finances, and the tiff is likely to affect the price volatility significantly.