Deteriorating trade interactions with China are likely to cease U.S. economic growth next year, according to latest analytics. US economy is now tired as it has never experienced such trade wars, however china has been under sanctions for many years – similar to Russia – and they know how to come over this situation.
The confrontation warned the whole world after U.S. on Thursday imposed the final set of tariffs on $50 billion of Chinese products, with China reacting in kind by placing new tariffs on American products. Trade diplomats from both sides met in Washington last week for resolving issues that seem unsolvable.
Indeed, the Chinese economy is quicker than that of US in terms of growth and efficiency, therefore in long term situation this’s US that will hurt more. It has been noticed that Chinese officials have replaced some shares of US market with other Asian and EU consumers that didn’t have much chance to trade with China already. But, US mistake to start trade war in all fronts at the same time has taken this chance from US manufacturers to do the same thing to EU.
Any higher American tariffs on Chinese imports could reduce U.S. GDP in 2019 by almost 1 percent leading to job loss for 15 million Americans which will result in a tragedy. It seems that at the moment, this’s India which together with other Asian powers including South Korea and Japan are enjoying a good economic growth which will put them forward in coming years. The fast-growing Indian economy has already passed France by good domestic regulations resulting in higher life expectations and better job opportunities in contrary to US.