China and United States have recently imposed import tariffs against each other.This looks more of a "PHONY" trade war. According to the IMF its just not that serious at this point of time but the world would definitely will be impacted if this turns out into a cycle of wide spread actions.So, certainly it is something to worry and be concerned about...
Now the question arises is ,how has all this started...Well there has been a potential trade war brewing between the two nations since the month of APRIL 2017. When, MR. DONALD TRUMP directed his commerce department to investigate whether import of foreign steel from other countries ;especially China could be a threat to national security.
Recent intensification's of trade tensions started in early MARCH 2018, with the UNITED STATES announcing its intent to levy steel and aluminium tariffs for national security reasons.
MAURICE OBSTFELD ,economic councilor and director of the research department at the IMF(INTERNATIONAL MONETARY FUND)said "I am not sure anyone has a formal definition of trade war.It is certainly the case that shots have been fired and negotiations are going on a largely bilateral basis "But again ,no formal definition.I think if we get into a cycle of very widespread actions and counter actions ,we would begin to see significant economic effects , and that would be, whether you call it a trade war or not,would be very worrisome" .
In MARCH 2018 ,there was a 25% tariff on steel imports from CHINA and many other countries ,imposed by the TRUMP government.BEIJING responded by imposing tariffs on US imports worth around $3 BILLION.This escalated to a point that TRUMP ultimately threatened to impose new tariffs on $150 billion of Chinese goods. The announcement has fed into several bilateral negotiations ,aimed at reducing US trade deficits with individual trade partners.
HOPING THAT these trade tensions will not get more intensified, because all this leads to effect the society and the people no just living in the UNITED STATED OR BEIJING BUT THE WORLD....