The US-China Trade War – The Way towards Economic Depression
From Current Affairs Notes for UPSC » Editorials & In-depths » This topic
On September 20, 2018, U.S. and China have announced fresh tariffs on each other’s imports, aggravating the trade war further. The European Union also joined the trade war recently, imposing tariffs on .3 billion of American goods.
Basic terms to know
- Tariff is a tax on imports or exports.
- Customs duty or simply, duty is the amount collected under a tariff.
- Dumping – Practice of selling a product at a price lower than the production cost in order to gain market share. Example – China has been dumping its cheap products in other countries and gets market share.
- A trade war is an economic battle in which countries impose restrictions (both tariff and non-tariff) on each other’s import in order to harm each othe
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