Trump Taking Major Risk With Chinese Trade War

President Trump is continuing to impose tariffs on goods imported from China in an attempt to increase American business, despite the fact that he himself has ordered banners for his 2020 re-election campaign from Chinese factories. In response, China has imposed Tariffs on many of the goods they import from America, and American businesses are already feeling the pressure.

Both sides continue to one-up each other like squabbling schoolchildren while the World Trade Organization, the very institution established to prevent this sort of issue from occurring at all, sheepishly watches from the sidelines.

It would seem the only thing any of the involved parties will agree on is that the situation is not ideal. But while the current trend does not inspire much confidence, there may well be a light at the end of this tunnel.

US Trade Representative Robert Lighthizer hopes to keep Trump from abandoning the WTO by reforming the organization, a proposal that Japan and the European Union seem to support. China has not earned much love on the global stage when it comes to trade, as they have done little to stop the cheap knockoffs of established brands that come pouring out of their factories and flood the markets. While not all foreign powers agree with the tariffs being imposed against China, they do feel it is high time the country was held accountable for its practices, and this pressure could be the key to making that happen.

Granted, the desired outcome is in no way assured, and if or until it does, everyone is feeling the pressure together.

With China imposing their own tariffs on American agricultural imports, US farmers are finding themselves in quite the bind. Many have already suffered from Trump’s immigration crackdown, the decrease in migrant workers has left many farms short staffed and with perfectly good produce rotting unpicked on the vine, but now the biggest buyer of their soybeans and pork is imposing tariffs in retaliation for the president’s actions. Trump’s assurances that this is only a short-term loss necessary for a long-term gain haven’t inspired much confidence, and his plans to offer $12 billion dollars in aid to the farm belt have been met with similar skepticism.

The US Government offering a bailout to American farmers is nothing new, though it has traditionally only been done during times of severe drought or market fluctuations effecting crop prices. The bailout will help farmers stay on their feet, but given how the trade war is shaping up, other industries effected by the tariffs may find themselves in need of financial aid as well.

America and China are each feeling the heat of the trade war in their own ways, but considering how heavily each one factors into the global economy, other countries stand to suffer greatly should this dispute get out of hand. So far the situation hasn’t passed the point of no return, and again, there could be some very beneficial policy reform on the horizon if things go well, but the key word is “could.”

Until America and China stop puffing out their chests and work this out, I’m afraid things are only going to get worse before they get better.