Updates on ongoing US-China Trade Wars
As a fallout of the ongoing US-China trade wars, the data released by the Wall Street Journal has shown that China is no longer the top trading partner of the United States.
While China is the world’s foremost manufacturing powerhouse and the world’s second-largest economy, the United States is the financial capital of the world and the world’s largest economy.
The trade disputes between these two behemoths have had severe and unnecessary ramifications on the national economies of other nations.
What has happened?
- China had been the largest trading partner of the US from 2015 to 2018.
- After becoming the president of US in 2016, Donald Trump had imposed a 25% import tariff on several Chinese products.
- This was followed by another 10 % tariff on separate products.
- This was followed by retaliatory measures in China which imposed a similar restriction on US Products.
- This caused Chinese exports to the US to shrink imports by 12% and the US?s export to China fell by 19%.
- This has caused China to fall behind Mexico and Canada to become US’s 3rd largest trading partner.
What happens for India?
- While countries like Australia, Japan, South Korea, and even Singapore have suffered greatly due to ongoing trade disputes between US & China, India has been comparably safer to the collateral damage.
- However, experts attribute this to more of skillful diplomacy and not any economic factors.
- This safety is a reflection of the lack of global competitiveness of India’s products, the lack of growth in its domestic economy and the lack of money for investment.
Category: Economy & Banking Current Affairs