China-US Trade War and its Implications for The World

China-US Trade War and its Implications for The World

Credit Google

 China's US trade war has a plethora of implications for the entire world. Some countries have been availing the benefits of this war while others are adding the prey of its severe consequences. It is imperative to mention that war was waged in 2018.

     Implication

  Change in the supply chain: China-US Trade War

                                 Multinational companies lowered their production level owing to the sanctions for both the US and China particularly for the latter, such companies found alternative routes soon after the second shift of taxies by Trump.

      Vietnam, in the meanwhile, availed positive outcomes of this trade war. Despite COVID-19, Vietnam, a developing country, has achieved seven to nine percent growth annually. Other countries imported goods and services in various fields from Vietnam to say the cast of sanctions imposed by the US in China.

·       Impacts on the commodity market

                                 Trade war lowered trade between both countries.  Second, COVID-19, which added fuel to the fire, trade of both countries dropped by teen percent.

                                 In this race demand for raw materials was augmented. Raw materials include copper, iron, and steel, to mean. Ultimately, the prices of final goods and services increased. on a micro level, the impacts can be seen in laymen.

·       Trade opportunities for other countries 

                                 China, for example, halted its import of soya beans from the US owing to high tariffs and has been importing them from Brazil. Thus trade between Brazil with China soared to 17 percent from 2018 to 2020

·       Global –economic uncertainty

                                 War has been creating uncertainty for investors.  They are reluctant about the future. Due to pervasive uncertainty, FTI saw a greater descent in both countries.

·       Spell-over effect on the world 

According to, the IMF, from 2018 to to2020, a one percent decline was observed in economic growth. both the countries have around 20-percent contribution in whole trade, in case of a trade war, the world will have to combat spell over epact in the future