China: Friend or Foe of the US
The escalating US-China tension is already showing adverse effects for both countries. Trump’s presidency introduced restrictive measures on trade flaws since 2018. China made retaliatory moves by increasing tariffs on American imports, consequently revealing the two nations’ escalating relationship. The continuing trade war will only increase the damage that has spillover effects on citizens and the world economy. In this regard, this paper explores the relationship between the United States and China. The analysis provides insights into the need for a truce that could contribute to certainty about the future trade policies likely to be pursued by the United States and China.
The primary objective is to analyze the causes of the current stalemate, the impacts of the trade war scenarios, and ideal ways for both nations to restore trust between them. The increasing quest for global economic dominance presents a pessimistic view of the likelihood of a long-term solution between the two nations. Equally, concerns over trade imbalances and other financial issues jeopardize efforts to resolve fundamental conflicts between the United States and China. This paper provides a financial perspective of the tensions based on the increase in tariffs, the background of the conflict and implications on national and global economies. This study concludes by providing viable solutions that could reduce the negative impacts of trade tensions.