Scribd Logo
Upload

Welcome to Scribd!

  • Us Chinatradewar 190926063249

    Uploaded by

    Muhammad Zubair
    9 views10 pages
    The US-China trade war began in September 2018 when the US imposed tariffs on $200 billion of Chinese goods. China retaliated with tariffs on $60 billion of US goods. Later, the US increased tariffs from 10% to 25%. The US wants China to reduce its $375 billion trade deficit with the US and give more access to US goods. This ignited a trade war between the two countries. The trade war has negatively impacted both economies through higher prices and reduced trade. For India, it has weakened the rupee, lowered stock markets, and increased import duties with the US. However, lower oil prices and potential shifts in manufacturing and investment from China to India provide some positive impacts.

    Original Description:

    us china trade war

    Original Title

    us-chinatradewar-190926063249

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The US-China trade war began in September 2018 when the US imposed tariffs on $200 billion of Chinese goods. China retaliated with tariffs on $60 billion of US goods. Later, the US increased tariffs from 10% to 25%. The US wants China to reduce its $375 billion trade deficit with the US and give more access to US goods. This ignited a trade war between the two countries. The trade war has negatively impacted both economies through higher prices and reduced trade. For India, it has weakened the rupee, lowered stock markets, and increased import duties with the US. However, lower oil prices and potential shifts in manufacturing and investment from China to India provide some positive impacts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views10 pages

    Us Chinatradewar 190926063249

    Uploaded by

    Muhammad Zubair
    The US-China trade war began in September 2018 when the US imposed tariffs on $200 billion of Chinese goods. China retaliated with tariffs on $60 billion of US goods. Later, the US increased tariffs from 10% to 25%. The US wants China to reduce its $375 billion trade deficit with the US and give more access to US goods. This ignited a trade war between the two countries. The trade war has negatively impacted both economies through higher prices and reduced trade. For India, it has weakened the rupee, lowered stock markets, and increased import duties with the US. However, lower oil prices and potential shifts in manufacturing and investment from China to India provide some positive impacts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    US-CHINA Trade War

    What Is US- China Trade War


    • In September 2018, US imposed a 10% tariff on $200 billion of
    Chinese products

    • China hit back with tariffs on $60 billion in American goods.

    • Later, in May, Trump boosted the 10% tariffs to 25%

    • US demanded that china must reduced its $375 bn deficit with US


    give more access to US goods in Chinese market

    • This has ignited a Trade War between US and China


    Why US Is Doing This
    • To reduce the US- CHINA trade deficit

    • To reduce the debt

    • To increase employment in US

    • To maintain Its Leadership in the market


    Why China Is Doing This
    • Tit-for-tat

    • To dominate the emerging digital


    technologies is confirmed by its vision
    Made In China 2025
    Strength of US
    • Idea + innovation
    • Free market competition
    • Technology

    Strength of China
    • Cheap labour
    • Copying
    • Manufacturing
    • China Creates 80% of Air conditioners and 70% of mobiles
    Effect of trade war on US

    • U.S. Agricultural exports to China dropped by more than half in 2018.

    • US federal funds rate rises more quickly than in the baseline forecast
    in response to higher domestic inflation.

    • Rise in financial stress adversely affect new credit flows and restrain
    investment, industrial production and trade
    Effect of trade war on China

    • China has to pay more tariffs on the same products exported in us

    • Results in decrease in demand of china products in us

    • Companies can slight hit on their profit margin


    How it affect Indian economy
    The value of the Rupee
    In the last one month, the value of the rupee has dropped to an all-time low, when in some occasions it was
    hovering around the mid 68s against the US dollar. This coincided with Donald Trump’s threat of imposing a
    fresh round of tariffs on exports worth $200 billion. This trend can be traced to the weakening of the US dollar,
    which automatically creates a negative impact on the trade deficit of India, causing a chain reaction of sorts.
    Indian stock markets
    Amid concerns over the global trade war, key indices in the Indian share market dropped due to the cautious
    approach of the investors. During this period, the BSE Sensex saw regular plunges in points. NSE Nifty’s
    performance too was along the same lines as it also saw significant drops. As of now, the Sensex is trading at
    about 37,521 (at the time of publication), which is still below the average.
    India-US duties
    As the United States of America imposed duties on steel and aluminium, India now has to pay approximately
    $241 million worth of tax to the US. India, on the other hand, as a counter-measure has proposed imposing
    duties on 30 different types of goods. This will ensure that the US has to pay about $238 million as duties to
    India. However, this will make life more difficult for the end consumers as everything that falls under the tariff
    scanner is expected to become more expensive.
    Positive impact on India from trade war
    • Decrease in price of crude oil in international market may result in
    strengthening of Indian rupees

    • Iphone will go into mass production in india this year, instead of China

    • It is believed that the tension between both the countries could see Chinese
    investment flow being increasingly directed towards India
    THANK YOU

    You might also like