Trade war unleashed by the United States in 2018, has hit the world economy. But in 2019, the events will develop at an even more hard scenario, economists believe. Will lose this war, and the consequences of the economic conflict is impossible to predict.
In early 2018, the economy of China and the United States grew, but changed everything launched by US President Donald trump’s trade war. 2019 year promises to be as unpredictable, while the continuation of the war could plunge the markets into an even deeper instability, economists fear.
At the end of 2018 during the G20 summit in Buenos Aires trump agreed with Chinese leader XI Jinping on a 90-day truce, which involves the prohibition of the introduction of new import duties. Despite this, economists perceive the “cease-fire” only as the calm before the storm.
Recall that “first shot” occurred in July, when the U.S. imposed a duty of 25% on 818 import of goods from China total volume of supplies of $34 billion per year, and China responded in kind.
In September, the U.S. imposed custom duties of 10% on imports from China of goods which total cost is estimated at $200 billion. China said duties from 5 to 10% on goods worth $60 billion.
After that, the President of the United States has agreed not to raise with January, the import duty on Chinese goods at $200 billion to 25% but to reach specific agreements so far away. And if none of the parties do not wish to make the necessary concessions, the deal will not happen.
USA in 2018, has already had a successful shopping military operation against the EU, Canada and Mexico, when imposed duties on steel and aluminum products in the amount of 25% and 10% respectively. Opponents of the United States capitulated to Washington and Brussels agreed to, and with Canada and Mexico entered into a new agreement.
Trump, however, is not going to abandon the policy of protectionism — in a dispute with China, the loser can be all, including the EU.
The conflict between two giants will result in a global trade war, warns the U.S. chamber of Commerce. “Washington tariffs on imports pose a serious threat, which in the future could provoke a global trade war”, — stated in the report of the Department.
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