By invoking national security clause, Donald Trump goes for nuclear option in trade war
From being the architect of the open world trading system in the post-Second World War era, today the United States has descended into a state in which it feels it is a victim of that same system.
A trade war is now in progress on two fronts. The United States opened the first front by imposing a 25% tariff on steel imports and 10% tariff on aluminium imports from a large number of its trading partners. That led many damaged parties to take retaliatory actions.
China was the first to respond with a 25% tariff on $3 billion worth of food imports from the US. Mexico, Turkey, European Union and Canada followed suit once it became apparent that the US would not grant them the exemption from tariff they had sought.
On the second front, the US has exclusively targeted China by slapping 25% tariff on a wide variety of imports worth $34 billion from it. China hit back in this instance as well, imposing 25% tariff on $34 billion worth of imports from the US. The US has threatened China with 25% tariff on another $200 billion worth of imports. China has said it will respond in kind.
On the second front, the US has exclusively targeted China by slapping 25% tariff on a wide variety of imports worth $34 billion from it. China hit back in this instance as well, imposing 25% tariff on $34 billion worth of imports from the US. The US has threatened China with 25% tariff on another $200 billion worth of imports. China has said it will respond in kind.