The US at loggerheads with trading partners in trade wars

Global Trade Wars, Trade Wars

The US has started global trade wars with virtually each of its trading partner around the globe. This was expected, as, during his campaigns, he had categorically stated that he didn’t mind such wars. The country, as of Thursday was renegotiating with China, Canada, Mexico, and the EU on deals it termed as heavily skewed in its disfavor. Almost every country has hit back furiously with counter-tariffs, policies, and threats meant to imply that the US measures are unfavorable. Every leader, even Trump’s favorite in the EU, the French President, came out in opposition to the US move, terming it as illegal.

The justification of the recent developments initiated by the US is that the global economic landscape as defined by imports and exports has significantly changed, and the US is finding itself on the receiving end in virtually every trade deal that it has entered into.

The most immediate question regarding the recent development is as to how we got here in the first place. According to the president, the main issue is that every one of its trading partners is ripping the country economically. Checking the statistics since he got to power almost two years ago, one can get a glimpse of the whole scenario. For example, he led a host of companies which had intended to flee the country into greener economic policies out there such as Mexico and China and made them invest home, thereby saving the country millions of jobs for its citizens.

The new move to impose tariffs on certain imports falls under a different category. The tariffs have been initiated at a point in time when the US trade deals with other nations are almost coming to an end, including NAFTA. With the changes in global trade, it is certain that the country is moving towards establishing itself strategically to ensure that it deals favorably in light of the changes seen over the time that the existing trade deals have been in force.

To avoid a tit-for-tat scenario, there is a need for concerted efforts to be made towards ensuring that all parties involved in the negotiations benefit mutually. The US must move away from the tendency to seek to import less than it exports. The complex nature of global trade implies that countries can benefit more than one ways. The key factors to consider include the labor involved, currencies at play, policies in force and the manufacturing implements used.

Leave a Reply