GROUP MEMBERS :-

NAME ROLL NO CLASS DIV

1. Prachi Prasad 6202 S.Y BCom F
2. Siddharth Purba 6203 S.Y BCom F
3. Muskan Gupta 6207 S.Y BCom F
4. Nidhi Lohar 6217 S.Y BCom F
5. Jitendra Singh 6229 S.Y BCom F
Introduction :-
 On March 8, 2018, the US President Donald Trump announced imposing
additional tariffs on China’s export of steel and aluminum to USA.
 On March 22, 2018, President Trump announced plans to enact sanctions
against China over its IPR policies that negatively affect the US stakeholders.
 These sanctions included raising tariffs by 25 percent on selected Chinese
products valued at $50 billion to $60 billion.
 On April 1, China announced that it had had retaliated against the US action
by raising tariffs on various American products, such as pork.
 On April 3, the US administration unveiled a list of 1,333 products worth $50
billion in trade to which it intended to apply a 25 percent tariff.
 Hours later, China released its proportional response: 25 percent tariffs on
106 products, also worth $50 billion in trade.
 The US and China are locked in a bitter trade battle.
 Over the past year, the world’s largest economies have imposed tariffs on
billions of dollars worth of one another’s goods.
Objectives :-
 Dominating world market
 Global attention
 Macro economic issues
 To know what's happening in and around
the world.
 To know its impact on other nations.
ANALYSIS :-
 Us trade deficit Total US Imports $3.1 trillion, Total US export $2.5
trillion, Trade deficit is $621 billion, Us imports from china $539.5
billion that is 17.3%, Us Exports to china 120.3$ that is 4.8% .Total
deficit of US is $621 billion ,Us trade deficit with China is $419 billion
that is 67%.
 Us Exports to china :- Grains, wheat, corn, soy bean, Meat
(pork/poultry) Mechanical parts (chips).
 China exports to US :- Electronic parts, Wooden furniture, Aluminum
car parts, Fashion accessories (hand bag), Seafood etc.
 The reason for trade war :-
1. Power
2. Economy
3. Politics
4. Competition
5. Money
6. Market
7. Control
1. Providing subsidies $300 billion investment
 Reason for increasing the tariffs rates by Donald trump :-
1. Keep manufacturing jobs in US.
2. Reduce US/china trade deficit
3. Keep US as dominate empire
4. Get US out of debt
Made in china 2025
1. Chinese company pressured private companies to adjust their vision to china's
2025 vision.
2. Foreign investment and acquisition. Government encourages companies into
semiconductor firms to gain access to technology
3. Mobilizing state backed companies
4. Forced transfer agreements
Us strength :-
• Idea and innovation • Free market competition • Technology
China's strength • Cheap labor• Copying• Manufacturing
IMPLICATIONS
 ″India could increase its trade footprint in (the) midst of the US-China trade conflict, particularly
under categories on which US has imposed tariffs on China," an August report from Singapore's DBS
Bank said.
 India could benefit by $11 billion as some manufacturers move production to the country, the report
said.
 But businesses in India face some challenges, including the need for land and labor reforms, as well
as the lack of infrastructure.
 The top three sectors in India that could benefit from the trade war are: pharmaceutical, chemicals
and engineering.
 The manufacturing sector may benefit too — particularly the textiles, footwear and electronics
sectors
 That's because exports from the U.S. and China will become more expensive as the tariffs kick in,
and some manufacturers may move production to other Asian countries — including India.
 Businesses in India face two key challenges: land laws and labor regulations .
 Land laws are the "biggest hurdle" for manufacturing and infrastructure development, Current land
laws make it difficult for the private sector to obtain space for manufacturing units .
 Another problem is that labor laws in India are "extremely complex,". They comprise about 40 acts
and companies are required to adhere strictly to all of them. This makes it difficult for
manufacturers .
 Land and labor reforms are two of the "most important factors of production"
Suggestions
 Trump threatens India and Mexico with tariffs , widening trade war .
 US President Donald Trump is expanding his tariff threats
 By June 5 , the US will strip India of its special trade status.
 India benefits most among developing countries which get US trade
concessions to ease poverty.
 Special treatment waived US tariffs on US $5 billion worth of Indian
products in 2018.
 The US claims , India has not reciprocated with equitable and
reasonable access to its market.
 India is not Trumps only new trade sanctions target.
 In April 2019 alone , an estimated 99k people were apprehended at
the US – Mexico border.
 Trump says he could possible raise Mexican tariffs as high as 25%
 Some US companies are now rethinking plans to move production
chains from China to Mexico
 Markets are rattled by fear that new trade war fronts could hurt the
global economy .
CONCLUSIONS
 There are no real winners in this US-initiated trade war. Countries facing new
tariffs, including the United States, experience declines in real exports and
GDP. Other countries are hit indirectly through weaker demand for their own
exports, either through supply chains or in response to weaker global
economic growth.
 A decrease in domestic demand in China can adversely impact the world
economy and slow down global economic growth. The United States is one of
the countries that is likely to be affected by a slowdown in the Chinese
economy because of the expected decrease in the export of goods and
services to China.
 Countries imposing tariffs and countries subject to tariffs experience losses
in economic welfare, while countries on the sidelines experience collateral
damage.
BIBLIOGRAPHY
 www.bbc.com
 www.google.com
 www.quora.com
 www.thehindu.com
 www.businessstandards.com
 www.nytimes.com