Trade
war or territorial war , a next global battle
A
Trade war is an economic conflict resulting from extreme
protectionism in which imposes tariffs or other trade barriers
against each other in response to trade barriers protection causes
both nations .
1.Opium
War :
The first Trade war was fought between the Qing
dynasty of China and the
British Empire from 1839to 1842 over ban on trafficking of the
substance by the British East India company to China ,This led to
China losing Hong Kong to Britain during the second opium war between
1856 -1860 .
Britain
along with France forced China to open all of China to foreign
Merchants and exempt foreign import duties . Both the wars weakened
the China and led to Modernization of China .Both wars were fought
for the purpose of business with China because in that time, China
Qing adopted protectionism and does not open China for foreign
businessmen .
2.The
Smoot - Hawley Tariffs Act, 1930 -.
To
protect the falling stock market and domestic industry, US president
Herbert Hoover signed the Smoot Hawley Tariff Act introduced by
Senators Reed Smoot and Hawley , origin to protect the US. Firm
sectors , however , president Hoover explained the scope of the Act
to include about 20, 000 products from various sectors while the US,
successfully reduced its import dependency over the next couple of
years , the retaliatory measures from other countries led to 61
percent dip in US exports by 1933. The Trade war only accentuated the
great depression . Due to this act , in the United States , the
economic crisis happened and the great depression in the United
States which result a lot of unemployment and poverty risen and this
type of protectionism , not only the United States economy affected
but also globally economy affected .although many trade wars happened
in the modern history
from time to time
But these two are the most effective and old trade wars in the modern
history.
In
the modern time , the means of war is changed because in this time ,
countries does not attacked on other countries by the Fighter jets or
missiles or other means of arms because the United Nations prohibits
this but this time , most of the nation used other method such as
trade war or diplomatic war .The purpose of all war is to bound the
other nation to accept the demand imposed by the other nations .in
trade war , nations does not attacked on there countries but they
attacked via preventing or prohibiting the companies of other nations
to conduct business in his own country and also imposed tariffs, so the
domestic companies can compete them .
Like
the other wars, in trade war Also no country is a winner ,, all
countries are looser because both are affected and in some extent
also the global economy affected by this trade wars but these two
are the most effective and old trade wars in the modern history
.Now
in the present scenario , A new trade wars started by the US
President with the China and this trade wars shall be globally
affected and not only small countries but also developed and
developing countries also affected by this trade wars .Due to this
trade , it may be great depression in the global economy .. The Trump
tariffs are a series of tariffs imposed during the presidency of
Donald Trump as part of his economic policy . In January , 2018 ,
Trump Imposed tariffs on solar panels and washing machines of 30 to
50 percent . Later the same year he imposed tariffs on steal 25
percent and Aluminium 10 percent from most countries . On June 1,
2018 , this was extend on the EU , Canada and Mexico . Some of few
countries exempted the steal and Aluminium tariff. Separately , on
July 6 , the Trump administration set a tariff of 25 percent on 818
categories of goods imported from China worth of 50 billion .China
accused the US of starting a trade war and on July6 , implemented
tariffs equivalent to the $34 billion tariff imposed on it by the U.S
. India plans to Recoup trade penalties of $241 million on $1.2
billion worth of Indian steal and Aluminium.
On
March 1, 2018 Trump announced his intention to impose a 25% tariff on
steal and 10 % tariff on Aluminium imports . In a tweet , the
next-day, Trump asserted " Trade war are Good and easy to Win . The
legal basis cited in Trump , tariff order is section 232 of the Trade
Expansion Act of 1962 , which under certain circumstances allow the
president to Impose tariffs based on the recommendations from the U.S
secretary of commerce .
Trump
complained of unfair trade practices and imposed 10% tariffs on $200
billion of Chinese imports in September China retaliated by imposing
taxes on $60 billion worth of U.S products.
The
U.S duties are set to increase to 25% at the starting 2019 . Trump
has also threatened to impose duties on $267 billion more of goods if
Beijing does not adhere to his demands .this would mean duties in
almost all of China's exports to the U.S.
The
U.S wants Beijing to cut outside and improve market access to U.S
firm's and help to end the Trade gap of $375 billion . Throughout
his Presidential compaign , Donald Trump's America First policy or
vision promised a protectionism agenda that would promote the grown
of domestic industries.
China
and US.are engaged in a full scale Trade war as both sides level
treats of new trade tariffs of each other and implement them , the
latest round of tit for fat Tariffs by the United States and China
has intensified the global debate about whether the world is facing a
more trade skirmish or heading rapidly toward a full blown Trade war
.The tariffs will Hurt economic growth .and trade tariffs will also
hurt the job creation .Global economy is doing well.economies like
India and China are doing well .Global economy will not do well if
tariffs kick in. Trump administration really wants to change the
progress that China is making in made in china 2025 with more
advanced goods production of semiconductors .The biggest trade
deficit or gap with China and I think , there is an issues with the
administration of China that China has used intellectual property
over the year for their advantages .In respect of this trade war ,
the World trade Organization said that the Trump proposed tariffs
will lead to "deep recession ".
In
the present scenario , The Trump imposes tariffs on chinese goods and
also to the other countries goods specially steal and Aluminium . Few
countries are exempted from the tariff by US , such as Japan , South
Korea and Thailand whereas European union , Brazil ,Canada and Mexico
are under the tariff of US. and in response to these tariffs imposed
by US ,European union, Canada , China, India and Brazil imposed the
same tariffs of the American goods . And due to the tariffs imposed
by the US , all countries which has affected by tariffs, under
compulsion imposes same percent of tariffs on the American goods
because due to imposing tariffs, these countries goods specially
steal and aluminium are increased the value of these goods in US
market , and so , the aluminium and steal manufactured by the
American company are available in a low value or price in the market
,and consumers automatically buy the steal and aluminium manufactured
by the American company . So due to tariffs , president Trump
promoted American company and give a protection to the American
company from foreign company , so that they can compete in the market
.
On
these countries which has affected by the US tariffs , they also
imposes such type of tariffs on American goods , such as China
imposes tariffs on American Agriculture products or goods ,
automobiles etc and European union imposes tariff on the American
Jeans , cosmetics , automobile , mobile phone , laptop etc , India
also imposes tariff on American Harley Davidson bike, automobile
,Apple I phone , laptop and Boeing company ,airplane . Canada also
imposes tariffs on American products for reducing the Trade deficit
with United States because due to imposition of tariffs by President
Donald Trump , these countries goods will be sell in a few number .
,.
After
this , trade deficit increased with United States .And due to
imposition of tariffs, the jobs creation shall be affected and many
people will be affected by these tariffs , because effected countries
company will be stopped gradually because there is no demand in the
US. by Imposing tariffs and after this many people lose their jobs
and increased the unemployment in the world .and this will be
affected globally .in trade war , All country is loser not winner
because this is affected globally .
And
in Respect US trade wars , If President Trump's thinks that I shall
win this trade war , then he thought wrong because after the
imposition of tariffs, although he can absolutely successful in
promoting it's own or American steal and aluminium companies but
Other sectors companies will be affected by the imposition of tariffs
by other countries ,which is also affected by the US tariffs , such
as due to the tariffs , steal and aluminium companies will be profit
while other sectors companies such as automobile , jets ,computer,
electronic , mobile companies will be in loss because these companies
will be affected by the tariffs of other countries .and the policy of
protectionism is against the rule and law of the World trade
Organization ..
In
this trade war between China and United States , although India also
affected by this war in some extent but there is also a big
opportunity for India if the United States and China bought Indian
products because United States imposed tariffs on Chinese goods and
China imposed tariffs on US product , so There is a more possibility
to buy the Goods or products which is earlier bought by the United
States from China , now US may bought the same goods and products
from India and China also bought the agricultural products from the
India , which is earlier bought from the United States . So we can
say that India is a more possibility in this trade war but if this
trade war is continue for a long time , then it also affect the
global economy .
Although
the US has Trade deficit with China approximately $375 billion dollar
.but the Trade war is not a good steps because it's affect globally .
The president Donald Trump used another means to reduce the Trade
deficit with China .we all of them knows that China stolen the
intellectual property of United States and also forced the US
companies to transfer technology to the chinese companies. American
president Donald Trump learns from the economic depression of America
in 1930 by the Smooth Hawley tariffs Act .and in this act also ,
America adopted the protectionism but United States was most
affected by my this act and thereafter, this act was repealed .Due
this act , the United States was victims of economic slowdown .
Although
the principle of protectionism is right in some extent specially in
defence sector because this sector is related to the national
security of The country .
Another
step taken by the President Donald Trump , it is also affected the
global economy .The President Donald Trump imposed sanctions on Iran
by withdraw the US from the Iran nuclear Deal 2015 . Although this
step or sanctions are criticize by the European union , UK , Germany
, France and China and said that all countries will stopped buy the
crude oil from Iran before the date of 4 November,2018 .And also all
companies which are working with Iran , withdraw the contract
otherwise Sanctions will also effective on these companies .
And
due to the imposition of sanctions by US, growth of some developing
countries will be affected and in the modern time , all countries are
related to each other , do therefore this will be affected the global
economy .President Donald Trump gave exemption Temporarily India and
some other countries from sanctions and these countries can buy the
oil from the Iran for few time .
Due
to sanctions imposed by the US on Iran, Iran reduced the oil
production because there is no demand of Iran oil in the world and
Iran can not sell own oil to other nations , other nations are also
under threat if they are bought the oil from Iran , then US sanctions
will also be imposed and effective .And out of Iran from
International oil market , there are more possibility to increase the
rate of Crude oil in the international market .and if The crude oil
is high, then it's affect the progress of developing countries .
Conclusion:
After
the studies and research , we can say that the trade war begins
between nations when the trade gap between two or more nations
increased or when the domestic companies to protect from the foreign
companies so that they can compete them .But this type of
protectionism is affected the whole world and global economy . In the
aforesaid paragraph we discussed this .so we can say that the trade
war is a next global battle .This is my research paper on the trade
wars .And this trade can not be challenged on any ground in any court
in the world .
