The Turns and Twist of The Trade Dispute Between China and The United States
The trade war between China and the United States is not coming to an end any time soon. Various Beijing leaders have sent distress calls to the president of the two countries asking each of them to have a reconsideration. However, neither President Donald Trump nor China’s Xi Jinping seems to have the push to surrender.
The escalating trade war is all about tariffs implemented by Beijing as a tit-for-tat retaliation strategy. Unfortunately, the strategy failed miserably. In fact, it triggered the United States to expand on tariffs on US$50 billion in Chinese goods. The new batch of tariffs escalated to US$200 billion in Chinese goods. Rumor has it that Beijing’s move aimed at having the country align itself with other European nations.
China and the US are among the nations, which have expansive economies in the world. However, the alarming status of the hardliners by the two leaders is putting China under siege. Speculations that the two leaders are having talks regarding the situations also seem to be vague. In fact, the feeling of a majority is that the longer talks will only cause more damage to the economy.
According to many business leaders and analysts, there are other conventional ways to resolve the matter. Not necessarily by means, which are hurting the economy. Trump has an upper hand in resolving the matter and is perhaps exercising the executive authority. His exit can only lender any promise to China null and void and the days are ticking by the day.
On the other hand, China is using the waiting strategy. It is hopeful that Trump will become flexible once the economy weakens. The US agriculture sector is already in limbo and farmers continue to lose a lot of money. China is also hopeful that his successor will have better terms and conditions.
Nonetheless, all the above are likely to have an effect on other country’s tariffs. More often disputes escalate from one country to another. Meanwhile, the European Union is keeping an eye on Trump’s threat for reiteration, even though he does not usually follow up.
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