The world knows pretty well about the heated trade war between the market giants the US and China. President Donald Trump carrying this legacy of years-long trade war is something nobody can ignore and they are not sure when it will end. It was last week only when Donald Trump raised the existing ten percent tax on Chinese imports to a whopping twenty five percent when talks regarding ending the trade war collapsed due to unknown reasons. China, on the other hand, responded to this situation by raising the import taxes on American products. However, as a response, Trump started talking about implementing taxes on even bigger range of Chinese products.
Donald Trump has tweeted a lot about this ongoing trade war. According to him, taxes are good because they force the Chinese companies to pay their government, which is somewhat false. He further explains that farmers need not to worry about the increasing taxes on American products in the Chinese market because he has a strategy to bail them out in that case. Trump’s own economic advisory team says that this strategy is wrong and will do nothing but inflict pain on both the sides. The global financial markets agree with the President’s economic team more than the President himself. As a result, stocks fell on the news.
Trade wars are often ugly and mutually destructive. The sole way to win a trade war is to convince the other side that you really don’t care about how global economy functions or you are too ignorant about it. This seems like a thing Donald Trump has specialization in. However, it also raises eyebrows regarding the fact that Trump is actually reckless and ignorant of how the global economy functions. This trade war is not a new thing in American history and many American Presidents have been a part of these ugly wars before. The United States and the European Union got on a trade war about bananas even though none of the countries actually grows bananas. Trump, on the other hand, is taking the war to a whole new level with China disregarding the fact that it will affect both the countries equally.
Trump is wrong in many ways
Donald Trump consistently argues that the tariffs paid by China are a direct benefit to the United States. So, even if the trade war goes big, it is still beneficial for the country. This thought is misleading and confusing at the same time giving the whole thing a wrong perspective. The only winner emerging from this strategy are the companies or manufacturers who compete with the Chinese products.
China would encourage the United States to back down, however, if they see that the country isn’t going back, possibly because their President has zero idea of what he is doing, they will have to back down. And it makes sense as well. Back at the time of Obama’s administration, members of his economic team suggested that this sort of standstill will cause a strategic disadvantage with China.
Although Trump may seem like he is all unaware of how harmful this trade war is for both the countries, he knows the truth and he has the preventive measures ready. Honestly, since this economic war is an all way lose situation, any resolution will eventually be a win. That is a pretty good position for Trump to be in right now.
Spotlighting a stronger economy into a lot of drama just to claim victory at the end of it a very Trump-thing to do. It displays his true genius to keep himself in the spotlight. However, not every time you need a dramatically penned situation. Sometimes even simpler plans which comes with peace and harmony can do well.