The document discusses the trade war between the US and China. It provides background on how the conflict began with the US imposing tariffs on $250 billion of Chinese goods and China retaliating with tariffs on $110 billion of US goods. A key reason for tensions is the large US trade deficit with China. The trade war is negatively impacting both economies and global markets. Several rounds of escalating tariffs are outlined from 2018 to 2019.

2. PRESENT BY
Deepak Mahajan
Shashank Dodde Gowda
Kuntarth Makwana
Nisha Patel
Surajith

3.  TRADE WAR BETWEENUS CHINA
 Background of China-US trade conflict
 Why US has a problem with CHINA ?
 Impact on the Chinese & US economy
 Solar panel and Washing Machines
 Chronology
 Top US Imports from China & Top US Exports to China
 Effect
 Conclusion

4.  WHAT A TRADE WAR MEANS?
 A trade war happens when
one country retaliates
against another by raising
import tariffs or placing
other restrictions on the
opposing country's imports.

5.  BACKGROUNDOF CHINA-USTRADE CONFLICT
The trade war between the
two superpowers, USA and
China emanated when the
US imposed three rounds of
tariffs on Chinese products
this year, totaling $250
billion worth of goods.

6.  The combined US tariffs
applicable exclusively to
China are US $250 billion.
 China retaliated in kind by
announcing tariffs worth
US $110 billion.
 BACKGROUNDOF CHINA-USTRADE CONFLICT

7.  WHY US HAS A PROBLEMWITHCHINA?
 While US have threatened most of the EU and NAFTA
nations with tariffs, the real target was obviously China.

8.  WHY US HAS A PROBLEMWITHCHINA?
KEY TAKEAWAYS
 The economies of the United States and China are intricately linked, due to the
two nations sharing the second-largest trading partnership of goods and services.

9.  IMPACTON THE CHINESE& US ECONOMY
 China was the United States largest creditor.
 Chinese impact on the oil process can benefit the
United States in the short term as the states can
enjoy decreased oil import price.
 Low production cost and cheap labor are
negatively the export market of the United
States.
 The economies of the United States and China
are intricately linked due to the two nations
sharing the second largest trading partnership of
goods and services.

10.  SOLAR PANELS AND WASHINGMACHINES
 Two companies begged the US Govt to raise
tariffs on imported solar panel.
 In January 2018, the Trump
administration announced it would begin
imposing tariffs on washing machine and solar
cell and module imports as the result of a Section
201 investigation.
 They estimated that the solar cell and module
tariffs amount to a $0.78 billion tax increase
based on 2018 import values and quantities of
four 8-digit Harmonized Tariff Schedule
subheadings, given on page 12 of this report.
 The United States imported 6.8 billion watts
worth a value of $4.9 billion in 2018 under the
four subheadings. The 25 percent tariff applies to
all imports above a 2.5 gigawatt exemption.

11.  The next year the triumph Administration slapped a
30% tax on imported solar cells and panels.
 The US decision to subsidize renewable energy
firms and impose tariffs on imported products and it
effect global market.
 We’ve estimated that the washing machine tariffs
amount to a $0.59 billion tax increase based on 2018
import values and quantities of six 8-digit
Harmonized Tariff Schedule subheadings, given on
page 8 of this report.
 SOLARPANELS AND WASHINGMACHINES
 The United States imported $1.29 billion of machines and $114 million worth of
parts in 2018. A tariff of 18 percent applies to the first 1.2 million washing
machines imported and a tariff of 45 percent applies to all subsequent washing
machines as well as parts.

12.  CHRONOLOGY
 September 21, 2011: Before Running For President, Trump Tweets
“China Is Neither An Ally Or A Friend — They Want To Beat Us
And Own Our Country.” The Tweet Is Among Several Statements
He Makes Criticizing China’s Trade Practices Before Running For
President.
 May 2, 2016: While
Campaigning For The
Republican Party’s Presidential
Nomination, Trump Says “We
Can’t Continue To Allow China
To Rape Our Country And
That’s What They’re Doing. It’s
The Greatest Theft In The
History Of The World.”

13.  CHRONOLOGY
 August 18, 2017: The USTR Initiates
An Investigation Into Certain Acts,
Policies And Practices Of The Chinese
Government Relating To Technology
Transfer, Intellectual Property And
Innovation.
November 8-10, 2017: Trump Pays A
“State Visit Plus” To China Where
Relations Were Considered To Have
Warmed.

14.  CHRONOLOGY
 Day 162: December 14, 2018 – China To Temporarily Lower Tariffs On Us
Autos; Resumes Buying Us Soybean Exports.
China’s Ministry Of Finance Announces That It Will Temporarily Remove
• Additional 25 Percent Tariffs On US Autos And Five Percent Tariffs On
Certain US Auto Parts For Three Months, Beginning On January 1, 2019. During
This Period, US Auto Imports Will Be Subject To China’s Standard 15 Percent
Tariff Rate On Foreign Autos.
 Day 526: December 13, 2019 – US, China Agree To ‘Phase One Deal’ Just
Before Next Tariff Hike
• China And The US Announced They Had Reached A Phase One Trade Deal
Friday, Just Prior To New Tariffs Coming Into Effect On Sunday That Would
Have Affected The Mass Of Consumer Goods, Including Popular Electronics
Like Smartphones And Laptops.

15.  TOP US IMPORTS FROM CHINA
TOP US EXPORTSTO CHINA

16.  TOP US IMPORTS FROM CHINA
TOP US EXPORTSTO CHINA

17.  EFFECTS
 Stock market:
 Uncertainty due to the trade war has caused
turbulence in the stock market with investors
being worried by the conflict.
 On December 4, 2018, the Dow Jones Industrial
Average logged its worst day in nearly a month as
it declined nearly 600 points, to which some argue
is in part due to the trade war.
 August 14, 2019 the Dow dropped 800 points,
partly caused by increasing trade tensions
between the U.S. and China. Nine days later, on
August 23, the Dow dropped 223 points in five
minutes after Trump "hereby ordering the
American companies to immediately seek
alternatives to doing business in China; and the
Dow was down 623 points for the day.

18.  EFFECTS
 Domestic politics:
 Analysts speculated that the trade war could affect
the2020 United States presidential elections, as tariffs
have negatively affected farmers, an important
constituency for Donald Trump and Xi Jinping may
also face domestic political pressure.
 Globally:
 The trade war has hurt the European economy,
particularly Germany, even though trade relations
between Germany and China and between Germany
and the U.S. remain good.
 Some countries have benefited economically from the
trade war, at least in some sectors, due to increasing
exports to the United States and China to fill the gaps
left by decreasing trade between these two economies.
Beneficiaries include Vietnam, Chile, Malaysia, South
Korea, Mexico, Brazil and Argentina.

19.  EFFECTS
 U.S agricultural exports to China dropped by
more than half in 2018.
 Rise in financial stress adversely affect new
credit flows and restrain investment,
industrial production and trade.
 China has to pay more tariffs on the products
exported to U.S.
 Decrease in demand for China products in
U.S.

20.  CONCLUSION
 The U.S – China trade dispute is a long-term issue, and perhaps an example of a
broader changing bilateral.
 However, there is still a huge potential for trade and investment co-operation,
considering the strong complementarity of the two economies.
 The two countries have responsibility to maintain the stability of global trade
system and should solve the trade conflict through multilateral mechanism. No
one wins a trade war. The US-ASEAN Business Council CEO Alex Feldman
states that "It's in everyone's interest to see this spat get resolved and go back to
normal trade relations between the US and China."