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Showing posts from June, 2018

THE BARROOM BRAWL – the on-going trade war rhetoric b/w Washington & Beijing

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The U.S. and China are already into a unilateral war and a battle of words over trade that has resulted in announcements of several tariffs on imports from both the countries. Let me first vet a clear picture of the Trade happening between the two. The trade deficit in 2017 has greatly widened between the two countries, with the U.S. importing $507 billion worth of goods from China, while the Chinese imported $138 billion from the USA. Now, this would mean that the U.S. is facing a trade deficit of around $379 billion. Trump and many other Americans attribute this huge deficit to the Chinese taking brutal advantage of the U.S. trade laws, IPRs and subsidies for domestic companies.  Last year the United States, the European Union, and Japan agreed to make common cause on this. But now Trump has alienated those allies by imposing tariffs on Japan’s steel and aluminium exports on national security grounds and threatening to do the same to EU allies while raging a unila