Abstract:
The USA and China are the most powerful countries in the global economy.
They have been partners in international trade for almost twenty years and they
represent more than 40% of global GDP. The two countries contributed in building
one another’s economy by constructing a solid relationship that helped in global
economic growth. Throughout the history, the trade war that happened before had no
winners. The trade-war between the US and China will contribute in global
slowdown related to international economy that is based on international trade and
global production as both of the parties contribute in a big share of the global
production. The rise of tariffs was up to 17% between bilateral trade and had a
decrease of only one percent in 2020. The trade war has resulted in a significant
decline in trade between the US and China in 2019, as well as significant trade
redirection to imports from other areas, resulting in a restructuring of Asian value
chains.
The research consists on representing the reasons behind the tension between
both countries and analyses the causes of it. In addition, we will look in the outcomes
that might result on this trade war and how it will affect some certain fields and
certain countries. This paper aims to represent the raise of tariffs related the imports exports between China and USA in the past three years that lead to rise of tension
between both parties.
