A trade barrier and its consequences
A trade barrier is concerned with levies on specific imports. Following Trump's election to the presidency, he withdrew from the Trans-Pacific Partnership, costing the country billions of dollars in annual earnings from diverse North American exports, not to mention the ever-expanding Asian economy. Additionally, (Mohan xx) contends that, while the proposal to build a wall across the US/Mexico border may appear to be a battle against drug dealers, it is bound to harm the American economy by cutting off trade with many other countries as well. The withdrawal from the treaty is likely to have consequences such as scarcity of food supplies. Arguably, in a volatile economy such as this one in question, the imbalance of supply and demand is an expected phenomenon to strike America hard and fast in the coming years. The scarcity of food will have a direct effect on the prices of food products to the ordinary persons in the US. Nonetheless, a decrease in supply eventually creates a huge demand which, if not put on check, is likely to cause trade wars between the US and other countries.
The impact on the Chinese economy
In a situation of trade wars, US as a country is likely to set embargoes and tariffs to the Asian nations. China, in particular, might be worst hit should the situation amount to that. Being the leading exporter of virtually all items on our planet, the Chinese economy is likely to suffer more. Equally important, trade wars are likely to cripple the dollar significantly, as a struggling agricultural sector will imply the US as a country seeking better alternatives of feeding its citizens in the best ways possible.
Work Cited
Mohan, Geoffrey. "How a 20% border tax could set off an international food fight." Los Angeles Times, 1 Feb. 2017, www.latimes.com/business/la-fi-trade-war-agriculture-20170131-htmlstory.html. Accessed 24 Feb. 2017
