The United States was already falling behind to Huawei, a Chinese tech company working to build the 5G network. Furthermore, the United States had a $419 Billion trade deficient.
In early 2017, Trump became the 45th president of the United States. Trump still believed China was taking American jobs. To help the economy: he imposed tariffs worth $250 Billion. In response: China enforced $60 Billion in taxes on American imports. Some argue this began the current trade war. On June 15, 2016, at Trump Tower in New York City Donald Trump announced his candidacy for president. He asserted Mexicans were drug dealers, and China was talking all are jobs away. China took offense to the comments by Candidate Trump but did not act on their anger. Before even taking office, Trump established a lousy relationship with Xi Jinping, president of China. In the same year, China and the United States were developing new 5G mobile technology that would provide an inordinate boost to the economy.
By definition, a trade war is when opposing countries levy tariffs on each other. As a result, countries tend to rely on domestic products. However, the benefits of a trade war aren’t permanent: they slow down economic growth.
Unfortunately, the trade war has continued, and America’s economy has endured. In May 2019, Trump banned the Chinese company Huawei due to National Security Concerns. In reality, America was attempting to moderate the development of 5G and gain a competitive edge. American companies now need permission from the government to interact with Chinese tech companies. American Consumers, shocked by the continuing two-year war, panicked causing a plummet in the stock market. The Dow Jones dropped three percent. America still has a population of 330 Million, who all need food, clothes, and beverages. Without China, America has found new trade partners: Taiwan, South Korea, Japan, and Canda. Financially the incorporation of new countries in trade has made the world more affluent.
However, the American economy has the potential to deteriorate especially with the price of China-exclusive products growing in value. According to an Oxford economics professor, Americans will have to pay $650 more for Chinese goods. Penniless people will have to cut their spending harming the economy.
There is no simple solution. Both President Trump and President Jinping have dug their countries into a deep hole. Currently, the Tariffs have totaled $110 Billion on both sides. With two demagogues in power, a solution is improbable. Trump or Jinping’s term must end or a nation will cave in to halt this proxy war. Chinese goods can’t be replicated, and America will cave in first.
Americans think of the United States as a first world country even though most of our economy relies on foreign nations for goods. This problem could become worse if this problem is not solved immediately. An innumerable amount of taxpayer dollars are wasted for goods that can be purchased cheaper in China. But not only for financial reason should this problem be solved, the new generations – millennials and Gen Z – also need to learn how to problem solve and reason. The world is now in the hands of these generations. It is their responsibility to make the world a better place now: and it all starts with apologizing for your mistakes.