The Republican leader, Darrin LaHood has said in a recent interview that the United States cannot afford to be in a long-term trade war with China.
The United States president, Donald Trump, by imposing more taxes on Chinese products. This didn’t help the American farmers one bit. The farmers stand by the economic policy of Mr. Trump. And the president gave a ‘bailout package’ to the local farmers to compensate for the price hike.
Republican leader Darin La Hood
China retaliated to the U.S call by increasing tariffs on products imported from the United States. The exporters from all other countries are given certain ‘discount packages’ by China.
The United States claims that China has lost more than 20 trillion dollars since the rise in tariffs. But China denounces the claims and says that the said amount exceeds China’s total GDP.
Trade war has affected the economies of both countries. Both the countries may not able to sustain the injuries and may have to revert their decision soon.
The trade war is going to be an issue of serious consultation in the upcoming G-20 summit. The summit is going to be held in Osaka, Japan at the end of this month. Donald Trump has denounced any possibility of a one-to-one meeting with the Chinese president Xi-Jinping.
The trade war is reshaping the dynamics of the globe. The world has not been able to recover from the economic recession of 2008. The imposition of stiff policies against economic rivals and competitors won’t be helpful either in dealing with the menace of degrading economic situations.
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