Ethiopia: Breaking News: Good News From Germany Taken over from US,Trump's Undertaking Case in China The China–United States trade war (Chinese: 中美贸易战; pinyin: Zhōngměi Màoyìzhàn) is an ongoing economic conflict between the world's two largest national economies, China and the United States.
A trade war is an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. Increased protection causes both nations' output compositions to move towards their autarky position.
The study, Trade and Trade Diversion Effects of United States Tariffs on China, shows that the ongoing US-China trade war has resulted in a sharp decline in bilateral trade, higher prices for consumers and trade diversion effects (increased imports from countries not directly involved in the trade war).
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