SUPERPOWERS IN TRADE WARS – THE US-CHINA CONFLICT AND EUROPE
Is this the new Cold War – this time fought with the weapons of tariffs and counter-tariffs? The US-China trade conflict is an unprecedented economic battle between two superpowers. There is no end in sight.
Joe Biden is inheriting a troubled US-China relationship. It's quite possible he will be unable to turn back the clocks set by Donald Trump. Is this the new Cold War – fought this time with the weapons of tariffs and counter-tariffs? The US-China trade conflict is an unprecedented economic battle between two superpowers. It goes back to the trade policy credo of US President Donald Trump: "America first!", which led to the US imposing 25% tariffs on numerous Chinese imports in 2018. China retaliated with counter-tariffs. Eight-hundred billion dollars' worth of trade is affected. The trade war is also becoming a crucial test for Europe. Germany is being drawn more and more into the Americans' line of fire with threats of punitive tariffs being imposed on German car exports to the US. To avert this, the EU is allowing genetically modified soybeans to be imported into the EU. To the anger of the French agricultural sector and European consumer protection groups. European companies with subsidiaries in China also face pressure with exports to the US stagnating as a result of the punitive tariffs. There is no end in sight for the trade war, and even the World Economic Organisation (WTO) is unlikely to change this.