Big war and future of free trade
The ongoing trade war between the United States and China is shaping up to be the biggest trade conflict in history, with potential fallout for the global economy. As tariffs have ratcheted up, moving from 104% to 125% on Chinese imports, both nations are caught in a cycle of retaliation that is disrupting their economic relationship and causing ripples worldwide. Historically, free trade has been the backbone of global markets, but this conflict threatens to upend that principle, highlighting China’s rise through self-reliance and an open-door policy. President Xi Jinping has said that China is not afraid of US pressure and experts suggest that Beijing may seek new markets or shift its focus from exports to domestic consumption. The world could witness a shift toward either a more liberalized trade model or a retreat into protectionism, where countries put up barriers to safeguard their interests. How China will respond remains the key question.
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