American’s see Chinese economy derailing in the near future as the trade tariffs are increased according to the decisions made by the President Trump in July 2018.
Whereas US President has said that there is no conflict between two countries, it is just the trade escalation.
China, however, is not ready for the unfair deal with the US. The trade tariffs are rising from both sides whereas the loss is more to the Chinese economy.
The reason behind the increase is the demand of US to reduce tax on the exports from China. President Trump claimed 25% border tax on Chinese goods when imported to US and it might increase further until talks between both countries are held and negotiated.
China is the major exporter of organic chemicals, iron, steel and Plastics goods to US and the world. Both the countries are using other policy instruments in their trade fight. But, both countries need to be reminded that even trade wars have to abide by International laws of economic warfare.
Trade wars can commence if one country perceives another country’s trading practices to be unfair or may occur as a result of misunderstandings of the widespread benefits of free trade.