Question

For this discussion, you are tasked with finding an article or television segment discussing either a US or foreign policy change that is having some type of impact on the manufacturing process, price of goods and employment rates in the US. I am going to ask that you only look at this discussion in terms of policy and not through the often-divisive lens of politics. Please copy and paste your article into the discussion forum or the link if it is a television segment. Additionally, please summarize what the policy is that is being discussed and how it is impacting manufacturing in this country.

Answer 1

The US and China are locked in a bitter trade battle.

Over the past year, the world's two largest economies have imposed tariffs on billions of dollars worth of one another's goods.

US President Donald Trump has long accused China of unfair trading practices and intellectual property theft.

In China, there is a perception that the US is trying to curb its rise.

• The US-China trade war in charts
• US-China trade war: 'We're all paying for this'

Negotiations are ongoing but have proven difficult. The two sides remain far apart on issues including how to roll back tariffs and enforce a deal.

The uncertainty is hurting businesses and weighing on the global economy.

What tariffs have been imposed?

Mr Trump's tariffs policy aims to encourage consumers to buy American by making imported goods more expensive.

So far, the US has imposed tariffs on more than $360bn (£296bn) of Chinese goods, and China has retaliated with tariffs on more than $110bn of US products.

Washington delivered three rounds of tariffs last year, and a fourth one in September. The latest round targeted Chinese imports, from meat to musical instruments, with a 15% duty.

Beijing has hit back with tariffs ranging from 5% to 25% on US goods.

Its latest tariff strike included a 5% levy on US crude oil, the first time fuel has been hit in the trade battle.

What's next?

Both sides have threatened to take more action with new tariffs and hikes to existing duties in the coming months.

On 1 October, the US plans to raise an existing 25% tariff on some Chinese products to 30%.

Washington then plans to deliver a wave of new tariffs on Chinese goods, ranging from footwear to telephones, on 15 December.

• Trump escalates trade war with fresh tariff hikes
• US delays some tariffs on Chinese imports

If this happens, effectively all Chinese goods imported to the US will be subject to tariffs.

China also plans to hit another 3,000 American products with tariffs by the end of the year.

Summary

The trade war between US- China, world's two largest economies has been detrimental to the world economy. IMF, World Bank have brought down the expected GDP growth of the world as well as most of the economies.

Manufacturing in particular has been the focal point of the trade war. It is because manufacturing employs large number of people and that is why it is very sensitive politically as well as economically. US President imposed tariffs on Aluminum and steel so that manufacturing could be revived in the country. For whatever reason economy doesn't work like that. In international trade comparative advantage is very important in order for trade to be successful..

In the short run it may look enthralling, but in the long term it makes businesses less productive and inefficient. Leaders should avoid using short term economic shortcuts for economic or political gains.