The great trade war, its roots and it’s possible consequences for global politics
Dr. Horst Walther, Diplomatic Council Commissioner on UN Affairs, will give a presentation at the Executive Club before this year’s Summer Celebration on June 28 near Frankfurt / Germany about one of the major topics shaking the world:
The US vs. China trade war
Before our very eyes a veritable drama is unfolding. It didn’t begin completely unexpectedly. And it started as a minor tit-for-tat exchange of blows.
- In March 2018 the US levied tariffs on steel (25%) and aluminium (19%)
- In April 2018 China responded with tariffs on aluminium, meat, fruit, and wine.
- In July 2018 the US implements tariffs on Chinese good worth 50 bn USD in 2 tranches: 34 bn & 16 bn mainly on electrotechnical goods.
- Nearly simultaneously China retaliates with the same amount on soybean, SUV’s an airplane parts.
- In September 2018 the US imposes tariffs of 10% on another 200 bn. worth of goods (electrotechnical products, rice, textiles, …)
- China immediately retaliates with 5% or 10% on goods worth 60 bn.
- In July the US raises tariffs von 10% to 25% for goods worth 200 bn. USD.
- China at the same time answers with 25% on goods worth 60 bn. USD
- In January 2019 the US another levied a lump of goods worth 200 bn. USD is with 25%
- This was responded by China with 25% on goods worth 60 bn.
- Recently these were followed by 25% on another 200 bn worth Chinese goods.
- The threat is to quickly follow with 300 bn. worth goods under the same conditions, if Xi Jinping fails to attend G-20
- Currently 35-40% of all imports from China are levied with hefty tariffs.
- The threat is out to apply this procedure to the other 60% as well and then even gradually raise the tariffs.
So, the economic struggle between the two heavyweights is in full swing. How will it go on? How will it end? Will it ever come to an end? What can we except during the year and in the new years?
Join the Diplomatic Council Executive Club (members only) to get an in-depth analysis.