U.S sanctions China, igniting a two-way global trade war

BusinessU.S sanctions China, igniting a two-way global trade war

U.S sanctions China, igniting a two-way global trade war

What was feared by the international community was only confirmed this Thursday: the trade war between China and the U.S was declared.
Starting August 23rd, a 25% import tax will take into effect in the U.S for any Chinese product entering the U.S soil. Overall, Donal Trump has threatened tariffs on $200 billion Chinese goods.
The goal? To rank down “Made in China” products, in order to push forward “Made in USA” items –  thus following the “Make the America Great Again” Trump’s election guideline.
However, is this going to enhance the U.S production? While experts mention a new “kind of cold war”, the public opinion alerts on the new “space force” that could be a fertile soil to start a new kind of war – this time in space, between Russia, China and the United States.

America isolates itself

It has been several months since the international community was hoping for this not to happen – but on August 23rd, the U.S declared they will apply a new tax on any imported Chinese good.
The whole operation will tax more than $50 billion as for 2018. On August 23rd, the $16 billion remaining products will be subject to this new tax.
The American administration justifies this measure as China has breached many copyright laws, commercial terms, as well  “technological misuse” – implying hacking.

A two-way trade war

As many experts confirm, this trade sanction will affect the entire spectrum of American households.
Indeed, more than 75 percent of consumer goods sold in the U.S are produced, made, or transformed in China.
Specialists are concerned that this heavy tariff will affect overall consuming habits in the U.S, while trade surplus has already risen to 11 percent compared to last year. That said, specialists say this it is only the beginning.
On the other hand, the Chinese government has announced on Wednesday that it would also implement a 25 percent tariff for any U.S good coming to China, including diesel and chemical items.
Will there be a star wars?
While the global trade situation worries most of the international leaders, this August 9th just marked a new chapter diplomacy wise. Mike Pence, Vice President of the United States, announced that the country would create a “space force”.
During the announcement, Defense Secretary Jim Mattis declared that “space is becoming a contested war-fighting domain. We have to adapt to that reality”.
The American government said this would be ready in 2020. President Donald Trump, twitted “Space force all the way!”. The project is estimated to cost $8 billion.
The White House fact sheet described that the operation’s goal is to: “improve, evolve and plan space war-fighting.” During his speech, Mike Pence described space as the next war battlefield and said : “We must have American dominance in space, and so we will”.