As the American domestic market by badly hit by these large
scales of imports of washing machines and solar panels, US took the step to
protect their market by imposing high tariff on imports of some products. The
findings by bipartisan US International Trade Commission helped the
inter-agency Trade Policy Committee to consult the USTR (US Trade
Representative) for recommending the President about this issue.
This step by US President Trump will most likely execute
trade tensions with nations like China and many other countries and resulting
in escalation of retaliatory trade measures against imports form the United
States. Some of the countries like China and South Korea criticized this
harshly step and further could take their complaints to the WTO (World Trade
Organisation) which settles trade disputes between the countries.
Previously also this incident same happened that US imposed
tariffs on some Chinese products, to neutralize that Chinses moved their
production house to different countries where there were no tariffs by the US.
Also, China is the world’s largest manufacturer of solar products.
Mr. President Donald Trump imposed a 45% tariff on imports
from China which would help American jobs and protect the interests of American
consumers. Usually America was benefitting from importing Chinese products
ultimately which proved them less costly. But competition from other countries
like South Korea is imposing a sense of fear to the Americans workers
The biggest influence America can have been economic, via
the Pax Americana. Its currency is considered the most stable on the Earth and
the Treasury Notes are generally the safest place to park your money.
Considering this, for trade settlement terms, international peace and a measure
not one can replace American currency as an Acting Pax of the world.
Influence on INDIA:
If US make harsh trade relations with China, it can prove
fruitful to India and US involvement in Middle East is harmful for everyone. If looking to these conditions a trade war
starts between US- China, India can’t choose a side who to help and the trade
relation of US with India can detoriate.
Influence on UAE:
These increased tariffs imposed on Chinese products have
depreciated the Yuan currency showing a positive effect in US currency and thus
this will affect oil prices. As China is a major consumer of oil because of its
new projects and infrastructure and development going on. So, coming on a
conclusion that US dollars appreciates compared to the previous period where it
was depleting will decrease the oil prices and thus UAE will have a negative
impact leading to lesser revenues