Sunday, 22 April 2018

US-China trade war to hurt global growth

A high-octane trade dispute between the world's two largest economies -- the US and China -- will harm global trade this year as it would give rise to protectionism .  According to the Economist Intelligence Unit (EIU) report, while global trade will be overshadowed by the ongoing dispute between China and the US, appetite for new free-trade deals will continue in the rest of the world including those involving India. protectionism will rise, but that a trade war will be averted, means that global trade growth will continue to slow in 2019-22, to an average of 3.5 per cent a year . As per the World Trade Organisation (WTO), the global trade growth recorded in 2017 stood at 4.7 per cent and is estimated at about 4.4 per cent for 2018. The Trump administration's proposal would see tariffs of an additional 25 per cent on USD 50 billion of imports from China, covering goods that are related to the Made in China 2025 initiative such as machinery and electrical equipment.