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US-China trade war: Tariffs are exacerbating existing trends, leaving few victors

US-China trade war: Tariffs are exacerbating existing trends, leaving few victors

  • January 2019
  • 22 pages
  • ID: 5730592
  • Format: PDF
  • By MarketLine

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US-China trade war: Tariffs are exacerbating existing trends, leaving few victors

Summary
The trade war between the United States and China began as an attempt by US President Donald Trump to correct what he saw as an unbalanced trading relationship with the second largest economy in the world. However, retaliatory tariffs from China were meted out. Both countries to varying extents, and in different parts of their respective economies, are under pressure due to trade barriers.

Some economic benefits and problems can be attributed to tariffs. For the most part, however, the trade war has exacerbated existing trends. Beyond inflicting some hurt on another economy, the fundamental aims behind the imposition of tariffs have largely been missed.

Key Highlights
- Whilst there have been some short-term successes, the trade war waged against China has had far-reaching consequences for many industries situated in the world’s largest economy.
- Echoing the example of the United States, the impact of the trade war on Chinese commerce is largely an exaggeration of existing trends.
- Neighboring nations to China now stand to gain from companies electing the risks and costs of moving elsewhere are acceptable to reap the rewards of tariff free trade with the United States and China.

Scope
- Examines the impact of the trade war on the United States
- Looks at how China is being impacted by the tariffs
- Assesses whether third-party countries can benefit
- Looks at the most adversely effected
- Asses how business dynamics may change between the US and China

Reasons to buy
- Will either the US or China benefit from trade war?
- Can other countries benefit from the tariff dispute?
- Which industries will suffer the most?
- Will companies continue to leave China?
- How much influence over Chinese tech firms does the US really have?

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