Question

Unit 1 - Trade War Debate
Since 2018 the world's two largest economies, the United States and China, have imposed tariffs on billions of dollars worth of one another's goods.
The trade war has brought struggles for farmers and manufacturers, and higher prices for consumers in the United States.
China's economic growth has also been heavily hit by the on-going trade war.
The uncertainty is hurting businesses and weighing on the global economy. please answer the following question.

1.) Would a trade war solve the alleged problem (higher prices for consumers)? Why or why not?

with references please

Answer 1

A trade war is a situation when countries impose tariffs on the imports made on each of them against one another. The prime intention behind starting such tariff imposition is the welfare of the consumers as well as domstic manufacturers. But the impliv=cation is different from the intention. If a trade war is extended over a period, it results in loss for the economy. As per the washington post, a jouranism company in US, businesses become less interested in making investments in ongoing and new projects when trade war happens. It not only reduces output growth but also has an adverse impact on the employment level. The reduction in employmenyt and loss of jobs reduces consumer spending in the economy. So, ultimately this leads to an adverse impact on the consumers and proves that trade wars are imcompetent and ineffecient.