Ok so when I was reading about this I had 17 tabs open because I had to google every other word I read, so this is dumbed down X10.
First off, what the fuck is a trade war, I hear you think, but not say out loud. And no it’s not anything to do with the hit TV show ‘storage wars’ which is both stupid and fantastic. It’s actually where a country imposes trade barriers like tariffs (the increase of tax on an item) or quotas, (a limit on how much of said item can be exported) on exported goods. The war bit comes in when another country retaliates and does the same thing, and it goes on and on until someone cries, but even then it still carries on. The current war, is between the USA and China.
A country might get into a trade war to knock out competitor products and force people to buy their countries own goods. America for example, are involved because China, the worlds largest steel exporter, are making it impossible for American steel companies to compete. Trump made a tweet on the matter the other day; “We must protect our country and our workers, Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!” And I have to agree with the guy, in fact, while typing up this article I’m sipping on a hot steamy cup of steel and crying steel tears.
According to Trump, America are fighting a losing battle, he took to twitter again to comfort his nation with his wise and soothing words; “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!” But their sorry state of affairs worsened when America’s 1,300 long, list of tariffs on Chinese products, was responded to by a much tougher Chinese list of American products, including soybeans, beef, cigars, whiskey, cars and aircraft.
Their retaliation came hours after America’s list, but experts think they’re just twisting their big steel knives so Trump backs down. China don’t really want to be involved in a trade war, but as the old Chinese proverb says “it’s only polite to reciprocate” (e.g. if someone spits in your food, spit on their face.)
The imposition of such tariffs won’t only effect the countries in question though, it will do nothing other than distort trade, and ultimately will lead to a loss of jobs. Other countries are also worried about the tactics the US is using. Trump intends use a little-known trade law to claim that steel and aluminum imports are a threat to national security. Critics claim that this undermines the rules of the World Trade Organization, and will ultimately disrupt the whole global trading system.
It’s for this reason that countries are prepared to also be involved, some threatening that if they are hit by the trade war, they will simply hit back. For example the EU is ready to impose tariffs on Harley-Davidson motorcycles, bourbon whiskey and Levi’s jeans as retaliation. so everyone is abit tense because they love jeans and alcohol and motorcycles, as all of which make you look really cool.