US CHINA TRADE WAR

Current Scenario

2 major economies
Engaged in tariff war
Disrupt World Trade
 Reason for the trade war
• What is Tariff(/customs duty) war?????

• US levy 25% tax on Chinese goods worth $34 billion on goods like
aircraft parts , flat screen TV etc
• China retaliatory tariff of 25% an equivalent amount as a counter
measure on goods like soya bean, auto mobiles, marine products etc
• US planning to again levy taxes in coming months thus lead to
trade war.
 Reasons for Trade War
USA against protectionism
(Penalisation, Dumping steel trade,Made in Cina 2025 approach)
China anti American sentiment
(Conspiracy of boycotting US goods)
 Effects of trade war
• Goods trade is more weighted with China, thus US economy will
suffer more
• In Asian region , countries promoting open trade like South Korea,
Malaysia, Taiwan, Singapore will suffer the worst
• World trade is seriously disrupted since two third of the goods traded
are linked to global chain.
 Concerns for India
• Generalised System of Preferences
• Tightening visa norms
• Hike on import duty on steel and aluminium items