Trade War

[tigger398]

What is a trade war. I heard china is up to something. Is this a good thing.

[walla299]

10 hours ago, tigger398 said:

What is a trade war. I heard china is up to something. Is this a good thing.

A trade war is basically what's happening now between the US and China. It started years ago when China started undercutting many industries and essentially made it difficult to impossible to stay in business, or attract manufacturing - but then demand disclosure of the technology involved. Then they would make it difficult or expensive for the same companies to remove their own equipment from China once it was there. The Chinese have taken advantage of the US and other countries at every turn, and someone seems to have come to the conclusion that its time for that to stop. So . . .

The US slapped tariffs on Chinese steel and aluminium.

The Chinese did likewise on some US food products.

So, the US is adding to a list of high tech products they are thinking of putting tariffs on for the next round. The uncertainty this causes is unsettling to the financial markets which is why the stock market is acting up. Financial markets do not like uncertainty.

The Chinese will probably add tariffs to more US products in retaliation.

At some point both sides will realize (I hope!) that this is going to be a zero sum game for everyone if this foolishness does not stop. They put on a show of negotiations, etc. and they'll both work something more reasonable for both sides. 

I'll be honest: I need to upgrade my tower system - preferably before they start tariffs on computer components which will drive the prices up . . .  Yes, I'm cheap. Yes, there is a certain amount of self interest in that statement! 

 

[TheMatrixHasU71]

23 hours ago, tigger398 said:

What is a trade war. I heard china is up to something. Is this a good thing.

No. This is often how real wars start