The Effects of a US-China Trade War to the US Economy Spell Doom

There are no winners in the event of a US-China Trade War. When the Chinese government decides to shy away from American Products, local business will prosper in the arena. The situation will fuel trade tensions between the two countries.

When this happens, China and the US will be slapping each other with increased tariff rates. In effect, leading US Industries will be pushed back and would cost jobs in the process. Panjiva, a company that tracks global trade data, reported that from November 2015 to November 2016, the United States managed to export goods to China amounting to $125.3 billion. Airplanes, soybeans, and cars are on top of the shipping list.

In return, China brings trade to the US to the amount of $484 billion in an available data gathered from the Department of Commerce for 2015. However, the Chinese President Xi Jin Ping emphasized that he has no interest in the trade war scenario held at a conference in Davos, Switzerland, as reported in CNN Money.

As what the Chinese spokesman, Sun Jiwen reiterated, there are two sides of strong trade relations, the beneficial and the damaging. Good relationship and cooperation bring about benefits and better economic gains while bitter handling of commerce leads to damages and economic downtimes. A trade war is out of the question.

Chinese billionaire Jack Ma is optimistic and does not see a trade war between the two countries. The chairman of Alibaba said that he would do everything he can to prevent a conflict from happening. He also advised the audience in Davos to give US President Trump the time and space, telling them that the US President is listening, according to a report in VOA News.

The rumored tariff that the US President told reporters is 45%, according to the NY Times. But the president is quick to correct it as such statement fueled by media could spell a trade war, as narrated in an article in Quartz Media,

Tags

US China Trade Relations, US State Department of Commerce, Chinese President Xi Jin Ping, US President Donald Trump, US economy, US Exports, Chinese Exports, Jack Ma

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