Recently the IMF stated that they believe that the United States and China trade war will cut the global growth to its slowest pace since 2008. It does seem that if this trade war remains unresolved, the global growth could get even worse. The United States and China are the two largest economies in the world, do we owe it to the rest of the world to resolve this mess? Also, how would we go about resolving this to where it is beneficial for both us and China. Lastly, do you believe that the United States and China will ever be able to go back to the way it was before this?
https://www.cnbc.com/2019/10/15/imf-says-trade-war-will-cut-global-growth-to-lowest-since-financial-crisis-a-decade-ago.html
People talk a lot about our trade deficit with China, which was Trump's main prerogative for initiating the trade war in the first place. Our trade deficit is deceiving as they technically hold much of our debt, but that is because they lent us the money by buying bonds. If we completely eliminate tariffs, both China and the US will benefit due to the simple idea of comparative advantage.
ReplyDeleteThe trade war with China has caused many lasting impacts in the global economy. If both countries were to just end the trade war and get rid of the tariffs everyone would benefit. Not only China and the US but the global growth rate would recover some if it were to end.
ReplyDeleteI agree with Joey, I think the US and China should just eliminate all tariffs so we would both benefit but so would the rest of the world. It would also most likely increase our GDP a good amount if we don't have to pay a high interest on goods made in China.
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ReplyDeleteI agree with the comments above. I think more efforts should be made to end this trade war, sooner rather then later. As both sides refuse to budge, one can only wonder how much longer this will go on.