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Trade War Explained

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Starting in the public eye as just a US ban on Huawei, the situation has spiraled into a trade war where trump has placed tariffs on goods from china and vise versa. Prices on everyday goods are expected to rise as a result, especially low end goods.

A trade war is when countries participate in this unspoken of war where they continuously impose taxes and quotas to be more favoured as the ideal supplier to consumers.

For example, say China produces things at a cheaper cost like clothing than the US would. China imports their goods to the US and consumers in the US buy the imported goods rather than local goods that American workers made, to save money. The US then decides to put a tariff on the clothing China imports to the US so the prices balance or US undercuts the Chinese prices, pushing consumers to buy local products.

This is an unfair war on those with low income within a country as prices are shooting up as leaders are focused on winning and being the preferred supplier. This is also unfair on the middle class as they can’t buy certain products. For the rich of course, they may travel and avoid the wars within the fighting countries, but this is only for a select few who have the freedom of time, money and responsibility to do.

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Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.