You know from recent news that the U.S. and China are having a trade war now as the Trump administration has slapped import duties on $34 billion of Chinese goods, but the USTR wants to impose another $200 billion on a wider range of imports, including for the first time an array of consumer goods. In retaliation, China has targeted the American farmers and ranchers who have in the past benefited from exporting a number of products to China. Some 91% of the 545 products China is placing a tariff on are from the agriculture sector. China has also responded by wooing European businesses and politicians with improved market access and investment terms. BBC commented that the tit-for-tat mentality between Beijing and Washington could just end up antagonizing both sides to a point where they cannot climb down from their hostile positions for fear of losing face. "You start with protectionism and isolationism," says Victor Mills, chief executive of Singapore's International Chamber of Commerce. "And then you don't just beggar your neighbour, you beggar yourself." The CEO of the global shipping giant Maersk said recently in a presentation that Trump’s protectionist tariffs on China and other countries could slow U.S. trade growth by up to 3 or 4 percent: a huge hit.

Discussion questions:

Do you believe that this type of trade war is good for the people of the countries involved? Why or why not? Think from the perspective of all stakeholders: governments, producers, support industries, logistical companies, sellers, and end-users. Should the WTO mediate in this dispute?

Answer rating: 100% (QA)

Trade War Personally I believe that the trade war between China and the United States will have adverse impacts on all involved stakeholders including ... View the full answer