What is a trade war? What is US – China trade strife?


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

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https://youtu.be/X5POksQYzH0
 
What is US – China trade strife of March – April 2018?

Essentially, a trade war is a back-and-forth dispute wherein a country imposes tariffs on certain imports in order to restrict trade. In response, the country or countries affected by those tariffs impose their own fees on imports.
 

What is tariff?

Tariffs are fees or taxes assessed on certain products when imported into a country. 
 

What is US – China trade strife?

The China-U.S. squabble (row) started when the US President Donald Trump imposed aluminum and steel tariffs in early March 2018 in order to protect  American industries.

He then announced 25% tariffs on $50 billion to $60 billion in Chinese exports to the U.S., including aerospace, information and communication technology, and machinery.

In April 2018, China placed fees on a wide range of U.S. products, including scrap aluminum, sparkling wine and apples. Trump then promised tariffs on about 1,300 Chinese products. Later, China came out with more tariffs, this time taking aim at Boeing planes. Again, Trump was entertaining the idea of another $100 billion in tariffs.

China warned, it would fight back "at any cost" with fresh trade measures if the United States continues on its path of protectionism, just after President Donald Trump threatened to slap an additional $100 billion in tariffs on Chinese goods. 
 
This sounds like a trade war, but Trump said it's not so. 
 
China has long been chided (scolded) for its trade practices and the White House says the purpose of the tariffs is in response to Chinese cyber and intellectual property theft of U.S. technology.  China has a reputation for making knockoffs (a copy that sells for less than the original) of designer brands while borrowing technological breakthroughs. 

The tariffs also aim to push back against China's demands for technology transfers from U.S. companies in return for access to China’s market.
 
 




Wednesday, 11th Apr 2018, 06:06:17 PM

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