Consequences of the United States–China trade war.

Trade war has had a negative effect on the economies of both countries, the United States and
China. The United States has contributed to higher consumer rates, and producers face financial
problems in trade wars. It has forced both sides to struggle economically which has contributed
to the diversion of their trade flows from both China and the United States. The analysis by
Moody's Analytics found in September 2019 that the trade war has already lost almost 300,000
jobs to the US economy and an estimated 0.3 percent of real GDP.

The ongoing economic conflict between China and the United States has begun with set
tariffs by President Donald Trump in 2018. China's other trade restrictions aim to compel it to
make improvements to what the U.S. considers to be "unfair trade practices" and infringement of
intellectual property. It has been reported by the Trump administration that these activities could
lead to the trade deficit between the United States and China. The Chinese government has
requested that American technology be moved to China. The Chinese government's reaction to
US trade policies has accused the Trump administration of engaging in protectionism. On
January 15, 2020, a Phase One resolution was reached between the two parties, but tensions
continued.

Next, Trump proposed tariffs to reduce the U.S. trade deficit and encourage domestic
development. That is why introducing tariffs became a main plank of his presidential campaign,
saying that the nation was being ripped off by its trading partners. The Council on Foreign
Relations' history mentioned that while many other analysts and trade analysts did not agree that
the economy was harmed by trade deficits, others agreed that persistent trade deficits were
indeed an issue, and there was some controversy as to how much of the trade imbalance is
triggered by foreign governments. It includes what strategies should be followed to minimize it,
if any. Almost all economists who replied to polls conducted by the Associated Press and
Reuters said that Trump's tariffs will do their country's economy, the United States, more
damage than good. The alternative means for the United States to fix its trade deficit with China
is proposed by some economists.

As of now, the economies of both the United States and China have been adversely
affected by the trade war. The United States has contributed to higher consumer costs and
farmers' financial difficulties. The trade war has led to a slowdown in the pace of economic and
industrial production growth. Many American businesses have moved their supply chains to
other areas of Asia. They raise worries that the trade war could lead to an economic 'decoupling'
between the US and China. The trade war in other countries has also triggered economic
disruption and recession, with some countries benefiting from higher demand to cover the
shortages. It has contributed to volatility in the financial market as well. The trade ties between
China and the United States are threatening the world economy as a whole, not just relations
between the Two Nations. The US-China trade cut is projected to push global growth down by
0.5 percent by 2020. The world's nations have taken steps to counter the harm caused by the
global conflict.

The consequence on consumers would rely on the consumption decisions of a person. For
instance, as imported goods are made more costly by the increased tariffs applied, many
Americans who appreciate tech products, typically manufactured in China, are likely to feel
short-changed faster than those dependent on locally (American) produced goods. According to
some research, it could be more painful for the American economy than for China to respond to
China's trade war with the US. Due to nationalistic calls to boycott products of American
companies, including Apple, McDonald's, KFC, American companies will partially lose their
customers in China. In addition, the internal market for products limited by the US (e.g., ZTE
and Huawei) is growing in China. Sanctions against ZTE placed the firm in a very difficult
situation because most of the chips were shipped from the US for the manufacture of
telecommunications devices, and vendors from China and Korea were unable to substitute the
amount.

Globally, there has been enthusiasm for the main objective of the Trump administration's
trade war. It is seeking to reform China's trading practices, although there have also been
critiques of the use of tariffs and the detrimental economic effects of the trade war. The U.S.
companies and the agricultural industries have resisted the trade war among American industries,
and most farmers have tended to support Trump. Some also disagreed with the tactics of U.S.
leaders. Trump is recruiting, but others are in agreement with the aim of placing pressure on
China. There were none of the leading Democratic contenders for president as of late November
2019. They said they would abolish the tariffs, including Joe Biden and Elizabeth Warren, all of
whom agreed that the U.S. had to confront and fix what they consider as China's unequal trade
practices.
References

Yang, Dennis and Ha, Jiming and Holtz, Paul and Yemen, Gerry, The US–China Trade War: Deal or No
Deal?. Darden Case No. UVA-GEM-0175, Available at SSRN: https://ssrn.com/abstract=3682605

Contributor, Y., Wang, Y., & Contributor, F. (2018, April 30). One final warning: What U.S.
tech companies will lose in trade war with China. Retrieved January 19, 2021, from
https://www.forbes.ru/tehnologii/360641-poslednee-preduprezhdenie-chto-poteryayut-
tehnologicheskie-kompanii-ssha-v

Schifrin, N., Yu, K., & Sagalyn, D. (2019, September 28). Impact of U.S.-China trade war felt in
both countries. Retrieved January 19, 2021, from
https://www.pbs.org/newshour/show/impact-of-u-s-china-trade-war-felt-in-both-countries

Costa, A. (2018, August 04). The early victims of Trump's trade war. Retrieved January 19,
2021, from https://www.bbc.com/news/business-45028014

Hass, R., & Denmark, A. (2020, August 25). More pain than gain: How the US-China trade war
hurt America. Retrieved January 19, 2021, from https://www.brookings.edu/blog/order-
from-chaos/2020/08/07/more-pain-than-gain-how-the-us-china-trade-war-hurt-america/