Global Trade War and its impact on Trade and Growth: War between USA, China and EU
Naila Iqbal Khan
Dr. Naila lqbal, Associate professore , Department of managment, Collage of business Adiministration, PNU, KSA.
Manuscript received on 02 June 2019 | Revised Manuscript received on 10 June 2019 | Manuscript published on 30 June 2019 | PP: 934-942 | Volume-8 Issue-8, June 2019 | Retrieval Number: G5629058719/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The United States of America (USA) and People’s Republic of China are waging a war against each other in the field of mutual trade. Washington D.C. is a witness to the latest failed talks between the two. If the erstwhile open mutual trade gets replaced by a somewhat restricted trade, the economic consequences for both the countries will be disastrous and it will also affect the world trade negatively. The same will happen with EU, Mexico and Canada if the trend continues. The effect of this war will be a cause of concern for world Growth too. If this modern day commercial war keeps itself limited to US and China only still the negative impact on the global economy will be almost -0.5% on world GDP, but if other countries also start playing the same tune and the trade war moves forward than the world GDP is likely to get reduced by not less than 3%. This may lead to a major recession in the global economy. Can there be a truce in this war? What could be the future of the world trade and growth if the war continues is the question?
Keyword: Protectionism, Tariffs, Growth, Wto, Tech War, Dumping, Quotas.
Scope of the Article: Advanced Manufacturing Technologies.