Question

essay question:

US-China trade War: A potential trade war has been brewing since April 2017 when Trump directed the Commerce Department to investigate whether imports of foreign steel from China and other countries could be a threat to national security. Critically access and evaluate the implication of both countries to the whole world economy.

• Clearly define the issue.

• Provide current examples/historical background.

• Future prospects/issues

Answer 1

Solution:

• The entire issue deals with that the the U.S. Commerce Department recommends a 25 percent tariff on steel imports, a move President Donald Trump said he supports it .Citing the interest of national security, President Donald Trump launched the Section 232 investigation to determine the ramifications of steel and aluminum imports. and there were reports that  the products were a threat to the economy. Hence donald trump supported it.
• Now this has led to a potential trade war for example different countries such as The European Union is a major exporter of steel to the U.S. A German newspaper reported  that the EU is planning to impose tariffs on classic American products, such as Kentucky bourbon, Harley-Davidson motorcycles and agricultural products such tomatoes and cheese. There is also fear that China will retaliate with similar tariffs over U.S. soybean imports. That means the war has already been started which is clear from these examples.
• Seeing this the future prospect should be that there should be limited tariff so that the situation for the us dosent gets worse in the future international trades also there is a chance of a posiible american steel stocks climbing but in future prospects it will be a harm.

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