Trade war analysis

NAME: Sugandha G Ghadi

Reg no: 2021MMBA07ASB170

Trump Has Gotten China to Lower Its Tariffs. Just Toward

Everyone Else.
 China increases tariffs because even US did so. On other side China decreases the
duty on import for America, Canada, Japan, and Germany.
 This resulted in workers became cost disadvantage to chines firms and firms in third
countries.
 This also motivated China to minimise the harm to its own country by importing vital
goods as better prices from other parts of the world.
 Though China has increased its tariff on US exports at 20.7% and reduce for rest of
the country at 6.7%.
 When US imposed Tariff on Steel and aluminium China in returned imposed $3.0
billion new duty on US export. This resulted in increase in tariff on US export by 8.4%
 Again, China imports $110 billion tariff on US Which increased the import for US by
18.3%.
 In this whole time China reduces the tariff for rest of the countries. It reduced the
tariff on Auto, 1449 other consumer goods. On Nov 1 China reduced 1585 industrial
product. By then, China had reduced it tariff from 8.0% to 6.7%.

US – China Trade war tariffs: An up-to-date chart

In 2018
 US Imposed tariff on China for 4 times and China also did for 4 times.
 US in Feb 7 imposed tariff on solar panels and washing machine.
 In march US imposed tariff on steel and aluminium and exempted for other 6
countries.
 In response to this China retaliate to US tariffs. And in May 1 cut down tariff for
most favoured nation.
 China in June and Nov Cut down tariff for MFN

In 2019
 In Jan China retaliation us autos and in Jan cut down tariff on IT product for MFN.
 US reduced tariff on Solar panels and washing machine.

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 2020
 China adjusted MFN Tariff rates and US reduces trade on Japan.
 US reduces tariff on solar panel and washing machine.
 China MFN tariff cut on IT products.

2021
 China adjusted MFN tariff.
 US too adjusted Tariff on selected imports from Europe.

2022
 China adjusted MFN tariff rates
 US reduced tariff in solar panel.

Other Tariff war

Anglo-Irish Trade War
The Anglo-Irish Trade War (also called the Economic War) was a retaliatory trade war between the Irish Free
State and the United Kingdom from 1932 to 1938. The Irish government refused to continue reimbursing
Britain with land annuities from financial loans granted to Irish tenant farmers to enable them to purchase
lands under the Irish Land Acts in the late nineteenth century, a provision which had been part of the 1921
Anglo-Irish Treaty. This resulted in the imposition of unilateral trade restrictions by both countries, causing
severe damage to the Irish economy.

Economic Impact of India-China Trade War

 Pharmaceuticals: India gets 70% of active pharmaceutical ingredients or APIs used in drugs
from China and a disruption in that would adversely affect the sector.
 Consumer Durables: India is heavily dependent on China for components for consumer
durables.
 Auto: China is a key supplier of sub-components used in the engine, electronics, tires, etc
 Telecom: China caters to a majority of smartphone demand in India and even globally.
Therefore, any disruptions will result in a spike in smartphone prices and probably lead to a
delay in the adoption of new technologies such as 5G.
 Power: India imports a vast portion of its solar modules from China.
 Chemicals and agrochemicals: The Indian agrochemical industry imports a high amount of
raw materials from China.

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