PRESENTED BY-: SUBMITED TO-:

JAIRAJ SINGH AMIT SHAH SIR

 WHAT IS TRADE WAR?
 A situation in which countries try to damage each other's trade, typically by the
imposition of tariffs or quota restrictions.

 A trade war happens when one country retaliates against another by raising
import tariffs or placing other restrictions on the opposing country's imports.

 A tariff is a tax or duty imposed on the goods imported into a nation.

 In a global economy, a trade war can become very damaging to the consumers
and businesses of both nations, and the contagion can grow to affect many
aspects of both economies.
ESSENTIAL FACTS

 Trade wars can commence if one country recognizes that a competitor nation has
unfair trading practices.

 A trade war that begins in one sector can grow to affect other sectors.

 A trade war that begins between two countries can affect other countries not
initially involved in the trade war.

 A trade war is distinct from other actions taken to control imports and exports.
Contd.
 A trade war happens when one country raises tariffs on another country's imports
in response to increased tariffs from the first country.

 Trade wars are controversial.

 Advocates say trade wars protect national interests and provide advantages to
domestic businesses.
ADVANTAGES DISADVANTAGES

1.Protects domestic companies from unfair 1. Increases costs and induces inflation
competition

2.Increases demand for domestic goods 2. Causes marketplace shortages, reduces

choice

3.Promotes local job growth 3. Discourages trade

4.Improves trade deficits 4. Slows economic growth

5.Punishes nation with unethical trade 5. Hurts diplomatic relations, cultural

policies exchange
TRADE WAR BETWEEN TWO MAJOR ECONOMIES
The ongoing trade tussle between world's two major economies the United
States and China is fuelling fears about damage to global economic growth

How US-China trade dispute began

 It all started in March last year when US President Donald Trump had slapped heavy tariffs
on imported steel and aluminium items from China and it responded by imposing tit-for-
tat tariffs on billions of dollars worth of American imports.
 The dispute intensified after the US demanded that China must reduce its $375 billion trade
deficit with the US and give more access to American goods in Chinese markets.
IMPACT OF TRADE WAR ON INDIA
 The ongoing trade war between the US and China will help India tap export opportunities in both
the countries in areas such as garments, agriculture, automobile and machinery, according to trade
experts.
 Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said the US has broadly
targeted intermediate components from China, particularly machinery and electronics, whereas
China is targeting American automotive and agricultural products including Soybean.
 "To effectively harness the emerging opportunities, India needs a carefully crafted strategy and its
meticulous implementation at the grass-roots level,“.
 The US-China trade war is indirectly helping India boost its exports
 The Chinese are seen substituting their cottonimports from US to India and other Asian
economies.
 “India can focus on numerous goods for expanding its exports to

 the US and China markets following the hike in duties.”

“Products such as intermediate parts for the defense and aerospace sector, vehicles and
auto parts, engineering goods, etc. have a higher potential for export,”