If we have a look at the impact of the US china trade war, we found out that there aren't any

real winners during this US-initiated trade war with China. Many countries are now facing
new tariffs, as well as the United States, expertise declines in real exports and GDP. Other
countries are hit indirectly through weaker demand for his or her own exports, either
through offer chains or in response to weaker international economic growth. In the
economic policy scenario, the amount of world real GDP is reduced 0.1% this year, 0.8% in
2019, and 1.4% in 2020. Thus, global economic process in 2019 and 2020 is just marginally
on top of our 2.0% threshold for a world recession. The International Monetary Fund (IMF)
(2018) trigger that the economic consequences of mounting China-US trade wars or
tension and warns that ought to these trade threats materialise, the GDP of the US and
China are reduced by 0.9% and 0.6%, respectively, resulting in a 0.4% fall in semi-permanent
world GDP.
Impact on Electronics, Farm Produce
The vulnerable tariff will increase “will fall far more heavily than in previous
rounds on shopper goods, clothes, shoes and baby products,” aforesaid Lovely.
“Almost 1/2 it'll fall on computers and electronic devices, due to the method our
trade with China is structured.”

Lovely expected “a massive hit” to costs of cell phones, laptops and something
electronic, moving businesses, households and universities. The consequences
may well be worse if Trump persists and takes successive spherical of tariffs from
the projected 10% to 25%, she added.

China has additionally suspended purchases of U.S. agricultural products, and a

politician statement through its state-run media outlet Xinhua aforesaid it's up to
the U.S. to line right trade conditions. “We stand to lose all of what was a $9.1
billion market in 2018, that was down sharply from the $19.5 billion U.S. farmers
exported to China in 2017,” said American Farm Bureau
Federation president Zippy Duvall.

“The consequence is that the entire financial system becomes less efficient;
that's the long-run price to all or any of us,” aforesaid Meyer.
U.S. Debt Will Grow
the implications for the funding of the U.S. debt is additional vital within the long
run. Thus far, trade with China has helped finance U.S. debt, and a discount in the
amount of that trade suggests that others have to choose up the tab. “When we
tend to pack up the trade channel by that greenbacks are sent dead set broaden
and are available back as purchases of assets, we are literally forcing the debt in
the U.S. to grow,” he said. “We’re forcing U.S. households to shop for the debt,
and that’s attending to lasting drive the economy down.”

According to Berkovich, “Right now, forty cents out of each new dollar that’s
issued is purchased by foreigners. That is sort of substantial, and you’re being
sponsored to it level now. Otherwise, you and I would have to be compelled to
purchase it.” As the trade war escalates, “the Chinese are attending to hoard
their dollars,” he added.
Afeect on india
Nonetheless, the repercussions of the trade war don't seem to be restricted to those 2
countries. In today’s connected world, international inter-dependencies are unwoven in
such the way that a rise in tariffs affects different economies too.
India is a significant neutral given its immense market at a population of $1.3 billion.

The Chinese leadership acknowledges that bilateral trade imbalance with the United States
will solely be satisfied by inflated trade with India. The Chinese volume of trade with the US
is far quite the degree of trade each countries have with India.

As the US is being advocate and unilateral, China and India would have to be compelled to
incline towards a tripartite world. China might cultivate a relationship with India as a
substitute. It could additionally open up its markets for Indian product and services – so
could the US.

We have witnessed diplomats and decision-makers from China and India meet sporadically
while not having any outstanding border disputes to speak about. Although India didn’t
comply with be a neighborhood of RCEP recently, that sounds sort of a detour from the
relation-building happening for a while, however as and once the terms offered are
favourable for India we have a tendency to might see this happening.

There are positive developments recently in terms of trade growth of India to the US and
China. There has been an increase within the export of products to each countries. Export to
the US grew by 9.46% to $52.4 billion. As several as 203 Indian goods are probably to
displace Chinese exports to the US, like rubber, carpets, carbon electrodes, and so forth
Stock market
Uncertainty as a result of the trade war has caused turbulence within the stock market with
investors "rattled" by the conflict.

On December 4, 2018, the Dow Jones Industrial Average logged its worst day in nearly a
month because it declined nearly 600 points, to that some argue is partly as a result of the
trade war.
On August 14, 2019 the Dow born 800 points, partially caused by increasing trade tensions
between the U.S. and China.[241] Nine days later, on August 23, the Dow dropped 223
points in 5 minutes once Trump "hereby ordered" American firms to instantly look for
alternatives to doing business in China; and also the Dow was down 623 points for the day
Financial markets stay volatile today, as fears of Associate in Nursing economic worsening
hit stock costs and drive bond prices to new record highs.

Shares fell sharply in components of Asia, with Australia suffering its worst day of 2019.

In London, the FTSE one hundred has tumbled to its lowest level since the tip of February -
down eighty points at pel time, with mining firms and banks among the top fallers.

European markets conjointly hit six-months lows, as concern grows that Germany may
be slippery into recession (it shrank within the last quarter).

America’s bond yield curve inverted for the second day running, with 10-year Treasury bills
commercialism at a lower yield than 2-year T-Bills. Some specialists see as a transparent
take-heed call of a recession, though others disagree.
Retail sales have overwhelmed expectations in each the UK and also the US, calming some
fears of a slowdown.
Qualcomm (QCOM) lost 2.3% and Intel (INTC) lost 1.65%. Broadcom (AVGO) and
Micron (MU) lost 1.3% each. All these companies rely heavily on China for their
business.
Qualcomm, Broadcom, and Micron derive over [*fr1] their revenues from China whereas
Intel derives regarding 1 / 4 of its revenues from China. With US Tariffs on made-in-
China cellphones and laptops expected to come back into play on December 15,
semiconductor stocks are sensitive to trade war-related news.

Apple (AAPL), that could be at the forefront of the trade war, lost 1.5% yesterday. Apple
manufactures get most of their product in China through contractors like Foxconn. Tariffs
coming back in impact on December fifteen can hamper Apple’s profitability. Apple is a vocal
opponent of the trade war. Apple is additionally trying to maneuver some production out of
China. Many alternative corporations are looking to move out of China.