Effects of the Sino-US Trade War on the Global Economy Business Essay (Essay Sample)

Effects of the Sino-US Trade War on the Global Economy
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Effects of the Sino-US Trade War on the Global Economy
Embroiled in a trade war for the better part of the year, the US and China threaten to destabilise the global economy by raising tariffs on goods exported from and imported to each other. Ana Swanson’s and Alan Rappeport’s article in the New York Times on March 9th documents President Trump’s pronouncement to increase levies on Chinese imports worth $200 billion from 10% to a lofty 25%, which is a significant shock on the global economy. The trade war threatens the global economy by increasing the price of products, destabilising the two largest global economic powerhouses, increasing unemployment due to projected inflation and reducing global output.[Pramuk (2019) writes that China retaliated to the US raising tariffs on $200 billion worth of Chinese imports by raising tariffs from as low as 5% to as high as 25% on 5 000 American products’ imports worth $60 billion. He also warns that China will persist to raise tariffs as long as the US continues to vacillate on its stance and raise tariffs. In projections, the US will raise tariffs on all Chinese products into the country by next year January, spelling doom for the global economy due to reduced output.]