By Daanyaal Matthews
China faces a 125% tariff on all its goods entering the United States as Donald Trump refuses to relent in his trade war with the Asiatic state. This is despite the US president announcing a 90-day stall on his global tariff plan and despite the Chinese reiterating that they would retaliate to tariffs imposed with tariffs of their own.
The dispute between the two largest economies has caused a stir in the global markets, as despite stock markets in America seeing tremendous increases when Trump announced the reversal of his global tariff plan, the US dollar continues to drop in value.
Speaking on VOC PM Drive, Mikatekiso Kubayi, international relations expert, describes the global tit-for-tat between Beijing and Washington as a zero-sum game, as all parties involved in this trade war—whether willing or not—would be affected negatively.
“There is no trade war that favours anybody; everybody will certainly ‘feel’ it, whether it be the US, China, or all of us. Europe is certainly feeling it. So, a trade war is not good for anybody,” argued Kubayi.
The introduction of tariffs has led to theories that the United States will enter a recession and see an increase in inflation. Kubayi concurs with this viewpoint but adds that these circumstances are purely created by the whims of the US President.
“No one wants to have a trade war with the United States or anybody else. This is literally a Trump administration that is trying to impose itself, make everyone around the world feel its weight, its power, and people are not buying it,” added Kubayi.
Listen to the full interview here:
Photo: Pexels
