Donald Trump's protectionist economic policies led to the introduction of tariffs on $550 billion worth of imports from China. President Xi Jinping responded with tariffs of his own, affecting some $185 billion worth of US-made products. As the two global economic behemoths enter a trade war, what are the implications for both economies and the rest of the world?
The trade war is illegitimate
While China does engage in unfair trading practices, the trade war violates international norms. The U.S. should not have used a coalition instead of a bilateral approach. It also should have used a more effective means of retaliation instead of tariffs.
The trade war is an inappropriate way to deal with China’s unfair trading practices
While China does engage in unfair trading practices, the trade war was not an appropriate response. Tariffs will not be effective. The U.S. should have used a coalition instead of a bilateral approach.
The trade war is a legitimate response to China's unfair economic practices. America is just trying to protect itself by applying tariffs. This will force China to stop its unfair practices if it wants to negotiate an end to the trade war.
The trade war secures American interests legitimately
China engages in unfair economic practices. Therefore, it is legitimate for America to protect itself by instituting tariffs. This pressure is the only way to force China to negotiate an end to the trade war by agreeing to stop its unfair practices.
The U.S. has the upper hand; it is likely to win the trade war because it can place tariffs on more imports from China than China can place on imports from the United States. Winning will force China to stop its unfair trading practices which will make the U.S. more competitive and bring jobs back to the United States.
U.S. businesses will thrive
The trade war will help U.S. businesses thrive by encouraging innovation and forcing China to stop its unfair trading practices, which will make the U.S. more competitive and bringing jobs back to the United States.
The U.S. will win the trade war because it has more leverage against China. The U.S. buys more from China than vice versa, which means it has more imports to place tariffs on and can hurt China’s economy more.
The United States should pick its fights better; the trade war with China will harm United States consumers and businesses by causing exporters to lose business and U.S. consumers to pay higher prices.
China can cause more damage to the United States
China can cause more damage to the United States by selling U.S. treasuries. Also, China can outlast the United States because its economy and political system can survive the damage. A trade war that the U.S. cannot win is harmful for the national economy.
The tariffs do have a large impact on China, but they harm the United States. China’s tariffs hurt American exporters as the higher prices force consumers to go elsewhere. U.S. tariffs on imports cause higher prices for U.S. consumers.
The trade war is good for China because it provides an incentive for market expansion in domestic consumption and exports, encourages innovation, and necessitates diversifying where it imports from. Also, China is more likely to win the trade war because it can last longer and cause more damage to the United States.
China is more likely to win the trade war
China can win this war. It can last longer because China’s economy has more room to maneuver than the United States economy. Also, China can cause more damage to the U.S. by devaluing U.S. debt.
The trade war is an incentive for market expansion
The trade war is good for China because it provides an incentive for market expansion and encourages innovation. The trade has caused China to try to expand domestic consumption, diversify where it imports from, and increase exports to countries other than the United States.
China increasing tariffs on U.S. imports such as food will produce a rise in price for Chinese consumers. Large tariffs of Chinese exports will reduce exports and manufacturing and cause damage to China’s economy. Together, these mean that the trade war will place China at a significant disadvantage.
Rising prices damage consumers and the economy
An inevitable result of the trade war is increased tariffs on necessary consumer goods such as food. This makes these goods more expensive for consumers. Making life harder for its citizens is bad for China.
The trade war harms international free trade. It causes collateral damage to global economies. The trade war is also indicative of a broader isolationist foreign policy direction that undermines global economic institutions which are good for the world.
The trade war undermines global economic institutions
The trade war is indicative of a broader isolationist foreign policy direction by the Trump Administration. This is disruptive to the rules-based international order because it undermines global economic institutions which are good for the world.
The trade war is good for the world because if China wants to stop the harm that the trade war is causing it then they will be forced to stop engaging in unfair economic practices. It will reinstate a rules-based order to the global economy.
The trade war improves China's economic practices
China engages in unfair economic practices. The trade war serves as a deterrent because it hurts the Chinese economy. China will want to change its practices to stop the current harm and prevent future harm to their economy.