Washington: Despite the warnings of lengthening shadows of the global recession ascribed to the US-China trade war, President Trump is unwilling to accept retreat against China. President Trump threatened that although negotiations were ongoing between the United States and China, tariffs would be imposed on the Chinese goods worth $300 billion, at the right time. The threat is indicative of the fact that all of China’s efforts to pressurise the United States, over the last few days, were in vain.
A severe trade war was sparked between the United States and China last year and discussions towards resolving it were also undertaken for many months. At the end of last year, the decision to suspend the trade war between the two nations for a period of 90 days, was taken. Negotiations had initiated between the United States and China, although China did not accede to the US conditions, and therefore, President Trump adopted a stern stance. However, the talks failed as China refused to accept the US demands.
Subsequently, President Trump issued successive threats to China and warned of teaching them a lesson. Trump had warned China and said that ‘China has violated the trade agreement with the United States, and therefore, they will have to pay the price for it. Also, if Beijing doesn’t sign a trade deal now, it will face severe consequences after 2020.’ After that, President Trump had announced an immediate imposition of additional tariffs on Chinese good worth $200 billion.
In retaliation to the tariff hike, China raised the tariffs on US goods worth $60 billion. Right after, China even threatened to target the US companies operating in the mainland and indicated introducing legislation for the purpose. At the same time, China said that it would sell the US treasury bonds as also stop the supply of rare earth minerals, fundamental for the technology sector. Nevertheless, the threats have had no effect on President Trump, and he has threatened to inflict punitive tariffs on all of the $300 billion Chinese imports.
Trump has realised all the warnings issued on Chinese goods, and the new one seems likely to be implemented soon. As China has indicated that if the current threat were put into effect, it would take aggressive steps in response and the trade war would thus flare up further.
Thus far, the effects of the US-China trade war on the global economy, are slowing becoming apparent, the significant impact of which is evident on the manufacturing and trade sectors of other nations. Only a few days ago, fears were voiced over the exacerbation of the intensity and extent of the blow the trade war would cause, leading to a possible global recession setting within a matter of months. Moreover, with Trump’s latest warning of a hike in tariffs, the fears are beginning to show signs of realisation.