Since the start of the trade war China has more than doubled its average tariff rate and America’s has tripled, and with every increase from America, came an increase from China ! and the fight has become overtly political because China’s tariffs are hitting President Trump’s voter base, many counties where Trump won in the 2016 election were in the Great Plains and these are the counties most affected by China’s tariffs. For example one of the things that China has done in its tariffs is imposing really high tariffs on American exports of soyabeans and this is a huge product that farmers in Iowa and across the Midwest grow only to sell to China.
HufNews’s economic Analyst M.B thinks at some level we’re seeing the decisions that businesses make will be affected by this, nowadays they’re not sure what markets are going to be open to them in the future and that’s going to impact their investment decisions because of the tensions arising during the trade war, which will cause the global economy slowing down and everybody’s increasingly concerned about that.
As things stand now, a ceasefire in the trade war could be drawing near and the two leaders are hoping to agree on a “phase one” deal soon, which could mean some tariffs being lifted. The Trump administration wants China to buy more American products and tighten up their intellectual property rules and if that phase one deal is signed, will that be the beginning of the end of the trade war?
Even if there is a phase one deal there will be a lot of issues still to be resolved but there’s more to the trade war than just tariffs America has also imposed restrictions on some Chinese firms especially ones in the tech industry specifically over one Chinese company. Huawei can offer cheaper prices because they are heavily subsidised by the Chinese government ( as HufNews’s economic Analyst M.B said )
In a later article we will look into Huawei and why the West is worried about it. And we will look into how these tensions will impact American industries already dependent on Huawei technology.
stay tuned
