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90 years ago, Franklin Delano Roosevelt investigated the reasons for the world’s biggest heartfelt. Some concrete reasons came out. The squeeze was this… The world’s retaliation on ‘sky -touching import duty’ (tariff) brought America on the path of destruction. This was a big lesson for America.
After this, the US leadership kept the tariff low for several decades. Make all reforms to increase global business. But again Donald Trump, who became the President of America, considers Tariff as infallible weapons. He has announced to implement strict tariff policy against China.
At the same time, China has complained to the World Trade Organization. If the dispute in both countries is not resolved, then this tariff war may soon be converted into a trade war. By doing this, is Trump taking America again in the garland? What will be the effect on Chinese economy? What will be the impact of Tariff War between China America on India and other countries? Let’s understand …
Question: What was the effect of the tariff imposed in Trump’s first term?
Answer: According to The Economist magazine, a strict tariff policy against the first term against China did not reduce the US trade deficit. Actually applying tariffs strengthen the dollar. The demand for goods coming from other countries decreases and the demand for foreign currency decreases. American exports also begin to shrink. Despite a strict tariff policy in Trump’s first term, employment in the manufacturing sector had decreased. The income of some sectors like steel increased, but the other sectors decreased.
Question: What action has China just took in response to American tariff?
Answer: China has launched an investigation against American tech giant Apple, Google. 15% tariffs have been imposed on the import of coal, LNG from the US. In addition to imposing 10% tariffs on American crude oil, agricultural appliances, large-displacement vehicles, pickup trucks, it has also strictly strictly entered the export of major minerals including Tungsten. Industries such as US defense, electronics and industrial manufacturing are very much dependent on Tungsten imports. However, Chinese action is not very effective on America.
Question: How much loss to the retaliation of both countries?
Answer: China’s trade surplus with the US is Rs 23 lakh crore. The American tariff includes sugar goods worth about Rs 39 lakh crore, while the Chinese tariffs include American goods worth Rs 1.73 lakh crore. After Trump’s victory, China gave a package of Rs 121.4 lakh crore to reduce the financial burden on local governments, but it is insufficient compared to its hidden debt. The condition is that local governments are unable to pay salary on time and are cutting.
Question: What is the impact of China-US Tariff War on India and the world?
Answer: According to Oxford Economics, India was the fourth largest beneficiary between 2017 and 2023 after Trump’s first tariff measures. At the same time, after increasing American tariffs, Chinese companies are setting up their plants in countries like Vietnam, Cambodia. China is engaged in increasing exports to Southeast Asia, Africa, Latin American countries. He is investing heavily from solar panel to artificial intelligence. Last year, China’s trade surplus record was Rs 86 lakh crore.
China will suffer two and a half times more damage than America
China’s economy may be 4.1% in 2025 due to tariff war, it was 5.4% in the fourth quarter of 2024. According to the Peterson Institute for International Economics, this will cause the economy of both countries. America’s real GDP may fall 0.07% by 2027 and China’s 0.16%. US GDP in 4 years Rs 4.77 lakh crore. And Chinese economy is Rs 11 lakh crore. Can see the decline of. This sequence is not going to stop.
China’s track record is extremely bad, has been breaking promises
In December 2018, the two countries failed to make trade agreement. Trump paid Rs 17.34 lakh crore. The tariff on sugar goods was 10% to 25%. In January 2020, both countries agreed to trade agreement. China got an additional 17.33 lakh crore in 2 years. Promised to take American goods and services, but did not fulfill the promise. Biden also kept his doors closed for Chinese tech companies.