Yesterday, American President Donald Trump kicked off a trade war with China. America has slapped tariffs or taxes on $34 billion worth of Chinese products coming into America, and is looking to do the same to more – maybe $200 billion worth of Chinese products in the next few months.
What did China do? Tit for Tat! They have put tariffs on $34 billion worth of American products coming into China.
Trump has already upset some other nations including Mexico, Canada and the European Union by putting tariffs on steel and aluminium.
Where is this all headed? Goods will end up costing the consumer (that’s you and me) more. Let’s understand what a trade war does. Go through the slides in this gallery to understand trade wars and tariffs better. We had put this up a little while ago when Trump was threatening to do this. It’s worth a refresher!
Written by: Sunaina Murthy