Question

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Though trade wars are often started to protect domestic industry and provide local jobs to the economy, this is a short-term fix that often leads to bigger, more drastic problems.

I don’t believe that this type of trade war is good for the people of the countries involved. In the early stages the consequences may not be recognizable but as the war continues, they will be more drastic. Once thriving businesses are on the verge of failure, workers are being laid off, and some sectors of the economy are witnessing enormous price hikes. (Snyder, 2018) These are just a few of the issues that arise when a county is involved in trade war.

These issues will influence all sectors. According to the Alliance of Automobile Manufactures, the average American could pay over $5,000 more for their next vehicle. (Snyder, 2018) The citizens of the United States can also expect to pay more for our electronic devices such as computers, televisions, and cell phones. The effects from the trade war will impact these buyers as well as the local sellers. This was only one example of how the trade war will continue to harm the economy the longer it lasts.

I believe the WTO should mediate the situation. At this point neither country is going to back down as they don’t want to risk their reputation. The head of the WTO has pledged to mediate between the US and China as fears grow that the escalating trade conflict between the world’s two biggest economies could lead to a full-scale global trade war. (Elliott, 2018) If this trade war continues it will not only harm the US economy but China’s as well.

Answer 1

Thanks for the raising this type of burning sensational issue. The trade war between United States and China are in worst condition now as both the country has introduced tariffs on goods traded with the other. The trade wars is not bad only for the two country involved in this but it will affect the whole world as the world trade is directly linked with these big countries trade. It will be impact millions of people of both the countries. US President Donald Trump had promised in his campaign to fix China’s longtime abuse of the broken international system and unfair practices. Starting in January 2018 the US imposed a tariff on solar panel imports, most of which manufactured in China, the story begins from here.

Because of this trade war many industries in both the country has suffered a lot and most importantly people of importing country who are familiar with these imported reasonably cheap product are suffering a lot economically as their pocket cost more for domestic product. Many people suffering their job in exporting country as demand of the product reduces and therefor they are being fired by the industries.

Here roll of WTO is very important as neither of these country will pull down their decisions back as they can’t risk their reputation. The WTO is an international body for trade and it can help out to both the countries to resolve their trade dispute and make a healthy trade environment in these countries as well as in the globe.