It [trade war] is one country battling another with goods that they import and export as their weapons of choice.
PHOENIX (PRWEB) September 13, 2018
The trade war between the US and China has been a hot topic between that is why National Debt Relief aims to explain it better to people. The article titled “How The Trade War With China Will Affect Your Wallet” released September 10, 2018, gives consumers a better picture of the what the trade war is all about and how it will affect their own finances.
The article starts off by explaining that a trade war is just what it sounds like. It is one country battling another with goods that they import and export as their weapons of choice. Typically, when one country imposes taxes, or tariffs, on another, the other country responds with its own tariffs, and it escalates from there, hence the term “trade war.”
The article explains that there have been many trade wars in the past. It hardly a new tactic that countries use and it was even the norm before the 1900’s. A trade war is not always a negative thing, especially between the US and China. This is primarily because the U.S. is a service-driven country and it makes up the vast majority of the economy. China’s economy is dominated by exports of goods not services, so any tariffs have a big impact on that country.
The article shares that there are mainly two reasons why the US imposed high tariffs on China. The first was to lessen the trade deficit giving everyone a level playing field. However, the second one has to do with the supposed trade practices of China. It has to do with how they conduct negotiations with companies wanting to do business in their country.
The article explains that a tariff on Chinese products will give way to more purchases from local items, it can still make a dent in consumer finances. This is because companies might pass on any increase in their production expense over to consumers. There might even be some companies who will not be able to absorb the hit and would have to downsize letting a lot of their people go.
To read the full article, click https://www.nationaldebtrelief.com/trade-war-with-china/