US and China are among the big economies of the world . Hence the trade battle between them can escalate to the point of a full blown trade war and can bring a new trade order in the world . These two big economies are threatening to levy huge tariffs against one another . The reson behind this trade war to stop theft of intellectual property by China from US . Such protectionism measures are taken to protect the US domestic market from Chinese goods and also the US labor market .
Such a trade battle will be detrimental to the balance of payments of every country associated . Tariffs are responsible for growing prices of goods . Also the international labour market will face a setback . Restriction of trade and malpractises carried on taking advantage of free trade , both should be stopped by measures taken by WTO .
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