The Economist: Trade War Between US and China Looks Likely

A transpacific trade war between the United States and China looms large, with the Trump administration alleging that China has stolen “America’s intellectual property” and engaged in “unfair industrial policy.” On June 15, the Trump administration offered two lists of Chinese products that would be subject to tariffs of 25 percent, worth about $50 billion. The first list comes into effect on July 6. Meanwhile China filed a complaint with the World Trade Organization WTO, has replied with its own list, comparable in size, and argued that the initial American tariffs represent a “unilateral violation of global trading rules.” On June 18, the United States Trade Representative was instructed to add more products worth $200 billion at a tariff rate of 10 percent and “threatened yet another, covering an additional $200bn of goods, if the Chinese retaliated again,” according to a recent article for the Economist. Companies on either side of the Pacific could find substitute suppliers, and some trade relationships will end. The trade war with tariffs and retaliation proceeds as predicted. – YaleGlobal