When we think of the highly regarded democratic countries in the world, we often think of America as the most fundamental democratic in the world, since America is one of the first democratic country and the oldest democratic country in the world, and when we think about communism we often think as China. In the modern days, both of these countries are having a trade war and it is very crucial for them because trade can decide their well being of the economy.
So what is a trade? basically, trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer and to a seller. there are lots of method of dealing with a trade for instance like free trade, fair trade, and rough trade, but in America, China, and Eu, trade war had fostered fast and rapid, according to the "The New York Times" president Trump's trade war went from 18 products to 10000 products, and this had impacted the American workers especially in agriculture. Also, America is one of the highest trade deficit countries in the world and president Trump had spoken that America's trade deficit is 817 billion dollars per year over the last number of years. but actually according to the "The New York Times", America's trade deficit is 552 billion dollars, and they are saying that if they don't trade they will save billions of money, but the standard of unfettered trade is that it is not effective and they cause the worst behavior of multinational and exploit countries with fewer protections for labor, and this has happened a lot.
President Trump had mentioned that trade is responsible for the death of manufacturing jobs, this is somehow true but it is being controversial, and there are other opinions saying that automation is the main problem because according to the " The Washington Post", U.S factories now manufacture twice as much as they did in 1984 but with 1/3 fewer workers.
One of the major shots president Trump fired was that he imposed a 25% tariff on steel and 10% tariff on aluminum on March 1, 2018. For further information, tariffs are taxes designed to make foreign goods expensive therefore making domestic products more attractive. Putting tariffs on steel and aluminum was great for some individual jobs and factories like an aluminum plant because it created jobs for people who are working in that particular industries.
but there are side effects too. For example, people who worked in nail factories were laid off for more than 100workers because of the raw material steel the nail factory used the price of it increased rapidly. Also, one estimate on economist had mentioned that
tariff on steel created 26280 jobs but could cost losing 432747 jobs. Everything might be hard but when it comes to an important and serious situation, the people who are in the higher place has to be more cautious and not to act emotionally.
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