There is no room left for compassion when it comes to economic war, in particular between the two biggest countries in the world: the US and China. Shortly after they set tariffs on steel, Mr. Donald Trump brought into action a tax levied on Chinese goods, worth $34bn. It didn’t take long for Beijing to retaliate, imposing tariffs on the US’ goods to the same value. The signs of war are visible even to an untrained eye, and the situation takes a surprising twist.
The US versus China - Round 1
In the 21st century, there is no need to shed blood and swing arms in order to show your power. Several economic tariffs could be of great use and cause even more harm than a fight on a battlefield. The term “Casualties” has gained more of a figurative meaning: neither of the fighting sides sustains losses on a battlefield, though both of them have domestic problems in terms of working places, economy, etc. So, what’s going on between the US and China? Are the recent moves by Trump justified or is it just an attempt to show power? Are there going to be long-lasting consequences for economy, social life or gambling? For the last one, you might visit the HolyMoly Casinos website, but we can only speculate about everything else.
Several days ago it became officially known that Donald Trump imposed a tax on about 800 Chinese goods (worth $34bn), arguing that the US had been economically suppressed for a long time. Despite such a sharp move, which will definitely have negative results on US businessmen (in particular those dealing with crude oil and soybeans), Trump’s deeds can be justified. According to the US International Trade Commission, since 1825 the United States of America has significantly reduced tariffs on Americans imports. In that year the percentage of tariffs was one of the highest in the US economy, (about 60%) whereas in the 21st century it has fallen down up to 2-3%. This has considerably influenced the US market, making its domestic goods less valuable than those which arrive from abroad.
The Chinese leader, who had promised not to strike first, was compelled to retaliate in order for the Chinese Commerce Ministry to, quote: “protect interest of its people.” According to the US Census Bureau, the US trade deficit in goods with China is about $375 bn now. It’s definitely not the Chinese who must be protected. Further, Beijing accused the US of starting the biggest trade war in economic history.
Overall, it’s just the first round of attacks by Donald Trump. In 2018, he made a promise to impose tariffs on Chinese goods worth $50bn.
Who can benefit and who will be limited in this war?
Apparently, countries that are strongly dependent on US and Chinese goods will struggle hard. They will be supposed to find a cheaper supplier of goods or content themselves with the new prices. First of all, it affects Taiwan and South Korea.
As for the cheaper suppliers, or alternative sources of imports, they will certainly bring some additional money to their coffers. Among those countries, the most ardent representatives are Mexico and some Asian nations.
The Chinese leader was forced to retaliate with the same 25% tariff on a host of US goods.
How to compensate for the losses?
The US tariffs will badly affect the US economy and its people. The entrepreneurs will be either forced to buy goods of a higher price or start purchasing their domestic products. On the other hand, the US market of particular goods won’t be in strong demand for China anymore, since there will be cheaper offers from competitors. This may result in significant GDP decline.
One of the ways to compensate for the losses may be the legalization of online gambling in the US. According to the recent researches, by forbidding online gambling the US coffers lose billions of dollars every year. There have already been implemented some steps in regard to online sports betting which is now considered to be legal. But when it comes to online casinos, the endorsing legislation is yet to be adopted. Though, it’s still not hard to find decent online casinos not only for US citizens but for players over the globe.
Summary
The recent tariffs were only the first step made by Donald Trump, and the second strike is just around the corner. We can’t say for sure whether his radical changes in the economy will be of great use to the US, but they will certainly make America more American.
