The US-China trade war, after exchanges of several rounds of threats by both the countries has been finally declared open with both the countries imposing tariffs worth $34 billion on each other exports. Unites States imposed a tariff of 25% on more than 800 Chinese products (including steel, medicine devices & so on) and 10% on aluminum.
U.S trade relations with China reflects, imports of $505 billion and exports of $ 130 billion, amounting to a trade deficit of $ 376 billion in 2017. U.S. is constantly blaming china for unfair trade practices and intellectual property theft, that causes U.S. to lose $225 billion to $600 billion every year. To command the situation, U.S. is imposing heavy duties on imports under the pretext of section 301 of the U.S. trade act of 1974, which permits the competent authorities to inflict trade sanctions on the trading countries on the ground of unfair trade practices. To counter the situation, China immediately respondent by imposing tariffs on 545 US products like Soy bean, airplanes, items and automobiles, with the desire to cause job losses in American States.
Looking closer to the move, it is quite evident that U.S. is targeting the high-tech industry of China viz; 5 G communication, Robotics, Artificial Intelligence and like, to hit the china’s ambitious project of made in China 2025.
The series of action between both the countries indicates the commencement of new era of geopolitical and economic supremacy. Further, the other aspect of U.S –China war is also the looming Dollar crisis. With the launch of Yuan linked oil futures by China which is the world’s largest oil buyer, the dominance of Dollar in the international trade will get a huge blow, once the futures get acceptability by the international buyers.
