Rising of Tariffs under International Trade
The raising of Tariffs has become one of the world largest economies; the USA is said to influence more on economic power. However, under the current leadership of President Trump USA as a nation decided to be engaged in a series of a trade war where they are now using tariffs as their primary supporting weapon. While conducting his campaign president, Trump frequently stated that he had the beliefs the ensure nation was suffering from various bad deals of trade and that there is the manipulation of tactics which comes from china. Trump as soon as he gets in the office; he started imposing various tariffs towards imported goods and the adjusted them as an attempt of making trade conditions to be more favourable for the citizens of the states. To eliminate increasing of tariffs, Trumps decided to impose 10-25% tariffs on billions of dollars of Chinese goods like solar panels, steel and aluminium. In response to this act, the Chinese were forced to put tariffs on the products of America that were worth billions of dollars. It was a tit-for-tat trade war that seems to have no end. However, the Chinese seem to be applying more ban in buying agriculture products of the USA, and it had also devaluated its currency to win a trade war against the USA. The free flow of trade that was taking place between the two largest economies was disrupted. As a results, the trade war between this countries made many nations in the whole world to be impacted in a negative way such that economics went down and many countries were not in a good position of being involved in a trade as a results of fearing the war to arise to their countries as it happened to USA and China. Many countries had the fear that if they participate in trade, there are the chances that there will be more tax which will be imposed on their goods and in the process of conducting their business war might arise hence affecting the economy of the many nations in the world.
Reference
Original article: http://www.tradeready.ca/2019/topics/researchdevelopment/global-trade-right-now/