US-China trade war

Over the last couple of months, the two economic superpowers, USA and China, have been at loggerheads regarding bilateral trade between the two countries. Trade deficit between them has been widening in recent times and the balance has been shifting in favour of China. Statistics show that in 2017, the volume of Chinese exported products to USA was US$ 506 billion, whereas China imported US products worth US$ 130 billion.

Against this backdrop, US President Donald Trump slapped import tariffs on Chinese goods coming into USA resulting in a cold-war like situation between the two countries. Trump has imposed import duties between 10 to 25 per cent on different items like steel, aluminium and other Chinese goods into USA. Meanwhile China, in retaliation, imposed tariffs on US goods entering its territory.

Due to the dispute over the trade issue, global trade has been affected. Prices of shares across all stock markets of the world are on the decline.

To remove the impasse, USA and China had several meetings. China has nodded to US demand for removing the trade deficit, assuring to bridge the trade deficit in phases. Recent round of talks has brought positive resonance. Globally people are hopeful that the 'trade war' will come to an end. A mutual agreement between the two sides is necessary for the welfare of the global economy.

Mohammad Zonaed Emran

MNC Banking Unit, MITS

Mutual Trust Bank Limited

[email protected]