Question

Discuss the impact of Trump's US-China Trade Wars on the two economies and on other economies throughout the world.

Answer 1

Due to the given trade war, exports to each other made by these economies will suffer, because China will also retaliate with the similar ban on goods produced in the USA. In response to it, Both the economies will build new trade relations with the other nations. USA will try to increase trade with the NAFTA nations as well as countries of Asia. China will also build relations with the countries like India, Pakistan and other countries of Asian continent. Besides, USA and China will give some additional benefits to their new trading partners and strategic tie ups will also be developed. As a result, new bilateral trade agreements will take place. Though, in the short run, the economy will also get negatively affected and jobs will be lost due to the decrease in exports to each other by these two economies.