An ounce of protection is worth a pound of cure. In this modernized world, Apart from nuclear and biological war, there is more explosive and catastrophic war called “Trade war”. There is no time left for humans to make weapons to fight.
It was the time of 18th and 19th century where the war with arms supplies were common.
Today if you want to lead the battle flump the opponent country economically. During 1652–1654 The Angelo Dutch war or the trade war fought between the navies of common wealth of England and united provinces of Netherlands, largely caused by disputes over trade. The weapons used in the trade war are the food we eat, Phone we use and the car we drive. Trade wars are a side effect of protectionism, which are government actions and policies that restrict international trade. A country will generally undertake protectionist actions with the intent of shielding domestic businesses and jobs from foreign competition. Trade war starts when the one country cognizes competitor has biased trading principles, also the domestic trade unions and industrialist lobbyist place a pleasure on government policies to make imported look less attractive to the public or consumers. When a trade war begins in one sector lets assume it to be a tech sector there are likely chances of it to grow firmly and affect simultaneously other sectors likewise.The trade war between two countries will have consequences far beyond the borders and stark effects on other countries too. US has always been a thirsty of power and dominancy in the world, in 1930 the United states of America raised the tariff on agriculture products in order to save American farmers from European agricultural products thus the retaliation to this came and most of the countries imposed higher tariff and the trade war across the world was started, thus US failed to keep it continue and decide to pass several acts that waters to reduction in trade war and president Roosevelt reduced barriers.
THE US-CHINA TRADE WAR
In the start of 2018 the white house imposed tariff on steel, aluminium and solar panels. These taxes impacted (EU) ,china and Canada as these were the countries that has the major trade with America of the above mentioned goods. In the response to this Canada, EU also imposed temporary duties on the products like American steel, Agriculture imports, hence tit for tat. The duties increased by 25% for every product importing from china. These tariffs coasted china nearly US$200billion of imports in response to this the Republic of china also imposed tariffs on American import products. It was widely seen in the media that Chinese were breaking IPhone a cell phone of worldly known firm apple situated in America. Rising money has massive effect, When people has less money to spend on clothing and other things and has less money to spend on goods and services that can damp in basic economy.
In 1978 the china’s GDP at market prices was just 6% of America’s GDP in 2018 the dramatically increase in Chinese GDP to 66%. In 1978 the china became world’s factory and witnessed unprecedented increase in economy. After joining the World trade organization the china became the economic super power of world. It is true that the US has trade deficit of $375billion trade deficit with china, trade deficit take place when countries buys more than it sells. After seven decades of trade liberalisation this would mark a huge turnaround.
The US blames china for being unfair in the trade. US would never let china to hold the economic supremacy which she already is leading, the trump administration had no option left to defeat china instead of trade war, but it didn’t work at all. Somehow Both countries had a massive economic fall due to trade war. The trade wars has no long-term winners as the calculation make no effect on it. In cases of trade wars the certain countries temporarily benefit from bilateral trade disputes. For example Japan’s export to US has increased by 40% because Chinese business has shuffled supply and distribution in order to circumvent US tariffs. when the public demands are radicalized it has impact on economy as well as public.
As I mentioned above trade war in one sector affects another sector similarly trade war between two countries affects the global economies and also those countries who are already in deal with trade war countries and any beneficiary can also be targeted. The $700billion is the amount that trade wars will have reduced global GDP by end of 2020. Say no to trade wars.