To: (Wibur Ross, US secretary of commerce)
From: (writer’s name and title)
Re: Resolving the USA-CHINA trade war.
Secretary Wibur Ross, the call of policy to resolve the intensifying trade war between China and the U.S.A is incredibly increasing since the United States is continuously slapping China with new tariffs on their goods every time and stating that it would continue imposing new tariffs if China doesn’t comply to specific trade agreements. The president and the department of commerce should work together to hold a bilateral trade with China to come on a common ground concerning business as it might lead to a global economic crisis.
A trade war is a war between the countries where they threaten each other to raise trade barriers on imported goods. Last year December president Xi and Trump came to a consensus to suspend increases in tariffs. There were no further escalations after that. After five months, president Trump took to Twitter and announced that the US would be imposing new taxes on Chinese goods. He continued to offer threats on the same. The rumor had it that China was trying to reconsider the agreement the two agreed. It responded with bilateral tariffs of its own. Mr. Trump suggested a team to look into China’s currency. They claim that China is trying to keep Yuan low to have a trade advantage over the USA. All these escalations of new threats over the levying of taxes are unnecessary. The war will have an impact on other nations that are trying to compete with China to supply the US market. According to (Do., 2019), tariff wars always imply agricultural exports. When Trump imposed new tariffs on imported Chinese steel and aluminum, it was clear that the move was detrimental to the economy as it is essential to the infrastructure. (Onyusheva, 2019) , States that if a war broke out, the USA would not be able to produce enough weapons as it depends on other countries for metal. The USA would eventually have to rely on locally acquired aluminum and steel. It leads to loss of jobs in the aluminum and steel industry as many would be rendered useless. Imposing new trade barriers would plunge the country into economic crises should other countries refuse to export their products.
Recently Mr. Trump issued an executive order to ban Chinese Huawei group. It means therefore that any country that shares the USA interests would not enter into a deal to do any business with Huawei Company. It comes as a heavy burden to Huawei Company as it gets some of the materials from the USA. It would mean that the company will have to look for other suppliers of the elements to facilitate the production. From my perspective, the USA may want to have dominance on significant issues in the world. The USA would increase the exports two folds as it would take advantage of the ban to continue exporting their products.
Onyusheva, Irina, Cherry Thinn Naing, and Aung Lin Zaw. “THE US-CHINA TRADE WAR: CAUSE-EFFECT ANALYSIS.” The EUrASEANs: journal on global socio-economic dynamics1 (14) (2019): 07-15.
Vanzetti, David, and Lien Huong Do. Tariff wars and their implications for agricultural exporters. No. 2186-2019-1567. 2019.