US-China Trade war escalates as tensions rise

It looks like the US and China still have a lot more trade tariffs to muster against each other, as tensions aren’t lessening.  An escalation looks like the only agenda right now with US tariffs on Chinese goods expected to move to $200 Billion in the near future.

Some economic analysts believe that the war has only just begun, as both countries look for an advantage over the other. While the US mid-term election is on the way, the trade tensions may be used as a tool in Trump re-elections campaign, which could further deepen the divide.

The failed trade meeting last week between US and Chinese trade officials in Washington resulted in no progress in solving their issues. The main reason for the US-China Trade War was the Trade Deficit that the US has with China, which ironically might be the reason China can’t fully retaliate to US tariffs.

In a Trade War, the ammonisation is the opposing country’s goods and at the moment the US has the advantage, as it currently imports more Chinese goods, meaning America has more goods to tariff than China does.

But China has other avenues it can target; like the services the US provide in China or other creative mechanisms. Only time will tell how China will respond and how far this will go, Multi-national originations in the meantime will be caught in an economy tug of war.

Source: cnbc.com

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